ANTI-DUMPING. (Hansard, 13 December 1933)

§ Mr. SMEDLEY CROOKE

I beg to move, That leave be given to bring in a Bill to prohibit the importation of foreign-made goods unless certain conditions are complied with. Some 18 months ago we changed our long-established system of Free Trade for a system of tariffs, and it cannot be denied that so far the results have been beneficial. Not only have we derived considerable sums in revenue, but during this year over half a million more unemployed have been found work; and this at a time of world-wide depression. Satisfactory as this result is, we find that although varying duties have been imposed on foreign imported goods there is still an enormous volume of foreign-made 374 goods being dumped in this country and sold at prices out of all proportion to the cost of manufacture, goods which the British workers can make themselves—goods which are produced by our foreign competitors where hours of employment and the standard of living are such as would not be tolerated in this country. Therefore, with these facts in mind, I am asking the House to give me leave to bring in this anti-dumping Bill—a Bill which will prevent dumping, will further protect our home market and find more work for the unemployed. It may be argued, why not increase the duties. If the duties were increased to 100 per cent. it would not prevent this dumping.

The House will observe the wording of the Notice of Motion, "a Bill to prohibit the Importation of foreign-made goods unless certain conditions are complied with." What are these conditions? They are simple, and in my opinion will be effective. I claim the indulgence of the House while I state the suggested conditions. Foreign made goods will be prohibited from entry unless the exporter can satisfy the Customs officials that the goods imported will not be offered for sale at a price lower than the market or selling price of such goods in the country of origin. To arrive at the market or selling price of such goods in this country consideration must be given to any depreciation of currency in the rate of exchange or subsidy by the Government of the country of origin. The onus of proof that the conditions under which such goods can be admitted are complied with, is to rest on the exporter in the country of origin, who will be called upon to give an undertaking to that effect.

There are many trades which are adversely affected by the dumping of foreign-made goods, and in some cases by currency manipulation or some form of subsidy in the country of origin. Take the jewellery trade, for instance. Last year there was a duty of 30 per cent. placed on imported foreign-made jewellery, which was reduced, unfortunately for the Birmingham jewellers, in the subsequent trade agreement with Germany. To overcome this reduced duty the Germans introduced what is known as a sperrmarks. I do not pretend to know the German language, but I am given to understand by those who 375 do that the sperrmark is a special currency which can be purchased by Germans, and that it acts as a subsidy and enables the Germans to undersell in our markets. This Bill will put a check to that practice.

Then take the pottery trade. There is a duty of 30 per cent. on all imported pottery. Yet imports for July, 1933, were twice as much as in the corresponding month of 1932. This Bill will check that, and will give the pottery makers of this country a fair chance, and provide work for more men in North Staffordshire. I noticed in to-day's paper the account of a deputation which waited on my hon. Friend the Parliamentary Secretary to the Board of Trade. Of course I do not know exactly what was said, but I understand that they complained of the unfair foreign competition. In fact I believe they produced and showed to my hon. Friend imported teapots that were actually being sold at 1s. a dozen. When I read of that I could not help feeling what a pity it was that that deputation had not been arranged for to-morrow, when my hon. Friend the Parliamentary Secretary might have replied to the deputation, "Well, a backbencher, the hon. Member for Deritend (Mr. Smedley Crooke) asked leave yesterday to bring in a Bill to put that matter right." I think he would have been able to tell them that if the Bill was passed it would do away with all their difficulties.

I suppose that the cotton industry is about the worst sufferer from this dumping. Foreign competitors are able to flood our markets with cotton goods at ruinous prices, and this dumping accounts for the large amount of unemployment in Lancashire. The Bill will materially help to bring the cotton weavers back to their looms. I hope to have the support of Members in all parts of the House for the Bill, but if I may single out any particular hon. Member I should mention my hon. Friend the Member for Dumbarton Burghs (Mr. Kirkwood), because he brought a practical illustration of our difficulties to the House last week when he produced foreign pencils which are sold in this country at 1d. a dozen, though they could not be made in this country to sell at less than Id. each. No tariff would keep out those goods. This Bill would put a stop to that kind of 376 dumping and would give a chance to the British makers of pencils.

Perhaps I have said enough to justify me in asking leave to bring in the Bill. I will simply add that British Dominions, Colonies and mandated territories would be exempt from the provisions of the Bill. I feel that the country would benefit greatly if a Bill of this kind were placed on the Statute Book. I ask the Government to give serious consideration to the provisions of the Bill. I freely admit that if the Bill became law there might be repercussions, but I am convinced that on balance the advantage would he with this country.