HC Deb 19 May 1919 vol 116 cc12-3
6. Mr. LORT-WILLIAMS

asked the President of the Board of Trade whether he is aware that, before the War, East India tanned kips, being goods roughly tanned in India, were dressed in this country into waxed and russet leathers and imitation box calf and box sides, used for the manufacture of Army boots, workmen's and miners' boots, and cheap boots generally, and also formed the basis of a large export trade; whether the Government controlled the importation of these goods during the War, and had a stock of about 80,000 bales on hand at the date of the Armistice; whether he is aware that the Government fixed price precludes the possibility of renewing this export trade, owing to the fact that the Americans can sell in Europe pure chrome leather at a lower price than the semi-chrome manufactured from these kips at the Government price; whether the Government are making large profits on these goods, which are being paid by the working classes, and which prevent the resumption of the export trade; and whether he will take steps to remove these and similar restrictions upon the trade of the country?

The DEPUTY-MINISTER of MUNITIONS (Mr. Kellaway)

The answers to the first and second parts of the question are in the affirmative. With regard to the third and fourth parts of the question, the prices at which these goods are being sold by the Department were fixed on the recommendation of, and after careful consultation with, the sections of the trade concerned, including the importers and merchants. The prices at which these goods are being sold are as nearly as possible cost prices, and carry only a small margin to cover expenses. It is not considered that the prices fixed preclude the possibility of renewing the export trade, as they are based, in part, on the comparative values of other classes of leather, including American leather. Notice has been given to terminate, as from 30th June next, the arrangement with the Indian Government for the purchase of the entire output.

Mr. HOGGE

Is this controlled by my hon. Friend or by the Board of Trade?

Mr. KELLAWAY

The Raw Materials Department of the War Office, taken over by the Ministry of Munitions.