HC Deb 20 March 1928 vol 215 cc183-5
7. Mr. JOHNSTON

asked the President of the Board of Trade whether he is aware that the Glebe Mill, Hollenwood, Oldham, has been sold at a break-up price and the machinery shipped to the Far East to be operated by cheaper labour and for longer hours; that 400 workers are thus unemployed in this country; whether there are other similar sales of machinery projected to Indian and Japanese capitalists; and what steps, if any, does he propose to take in the matter?

Sir P. CUNLIFFE-LISTER

I am not aware of the particular case mentioned by the hon. Member, but it is the fact that a number of cotton-spinning mills are being closed down and their machinery sold. Some portion of such machinery may be shipped abroad, but I have no power to prohibit such export.

Mr. JOHNSTON

The question does not ask the right hon. Gentleman as to his power of prohibiting exports. Can he answer the last part of the question, which asks what steps, if any, he proposes to take in the matter, or whether he proposes to allow this proceeding to continue?

Sir P. CUNLIFFE-LISTER

I understood that that referred to the question as to whether I could stop the export of materials, but, if it refers generally to the position in the cotton trade, I really have nothing to add to the rather long speech which I made on that subject in the course of the Debate the other day.

Mr. W. THORNE

If this machinery is exported to Japan or India will not these machines operate in those two countries, and will not that mean keener competition for this country?

Sir P. CUNLIFFE-LISTER

That may be so to some extent, but the only power I should have to stop machinery being exported would be if this House were to pass an Act of Parliament to say that machinery could only be exported under a licence of the Board of Trade, or if the export were prohibited altogether.

Mr. THORNE

Does this mean that, so far as employers are concerned, they do not care where the machinery goes as long as they get the money?

Sir P. CUNLIFFE-LISTER

I do not think that is at all a fair reflection to make. If a company goes into liquidation and its assets are disposed of, it is inevitable that the machinery is sold. What is much more important is that there should be amalgamation and reconstruction in this trade, but that must come from within the trade—[An HON. MEMBER: "Oh!"] of course, it must—so that new machinery may be installed.

Mr. JOHNSTON

Is the right hon. Gentleman not aware that there are other means and other methods besides prohibition of export of machinery by which this situation can be dealt with?

Sir P. CUNLIFFE-LISTER

There is always the possibility of giving subsidies to industry, but I think that is a thoroughly unsound practice, which would not commend itself to the House. The other alternative is for the industry itself to try to make itself as efficient as possible.

Mr. HARRIS

Does not the manufacture of machinery employ a great number of engineers, many of whom are out of work, and is it not desirable that the export of machinery from this country should go on?

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