HC Deb 16 February 1920 vol 125 cc483-4
7. Mr. HOLMES

asked the President of the Board of Trade, whether the Wool Council submitted to him in the autumn of last year a scheme by which 25,000,000 yards of cloth for men's suits and a similar quantity for women's and children's clothing should be manufactured from wool issued at controlled price and should be costed at every stage so that at no point in production or distribution would more than a reasonable profit be yielded; whether he rejected the scheme on the ground that the Profiteering Act would keep down the price of clothing; and whether any action can be and is being taken under the Profiteering Act in this matter?

Sir A. GEDDES

In the summer of last year such a scheme was submitted, but the reasons for rejecting it were not primarily those suggested in the question. The Profiteering Act has been applied to all articles of wearing apparel, and I am satisfied that this has had a stabilising effect on the price of clothing.

Mr. HOLMES

Will the right hon. Gentleman tell us the reason for rejecting this scheme?

Sir A. GEDDES

Yes, with pleasure, but it would take rather long to elaborate it in full. In the first place, legislation would be necessary. In the next place, it would have meant a very large Department, with a very large number of officials, at very great cost to the Treasury. In the next place, it would have disorganised trade, at a moment when there was very considerable difficulty in getting under way, by cutting across all existing contracts. It would have meant, further, a renewal of State control at a moment when freedom in connection with our export trade was most extremely desirable. It would have led to a very slight saving to the consumer, and hindered employment, and any slight benefit in the price of clothes would be entirely lost. The last point is that it would have been 18 months at least before a new suit under the scheme could have been available on the market.

Mr. HOLMES

Is it not surprising that the committee which inquired into this matter did not see fit to give all these reasons against it?

Sir A. GEDDES

I did not control the committee which issued a report on this matter. They stated that the Board of Trade reasons were those suggested in the question without asking the Board of Trade, so that I can only imagine that they found them out by some process of divination. This is the first time I have been asked, and I have now given the answer.