§ 32 and 33. Mr. CROSSLEYasked the President of the Board of Trade (1) whether he is prepared to grant assistance by way of a Government guaranteed loan in order to accelerate the scheme of Lord Colwyn's committee for the elimination of redundant spindles;
(2) whether he has any statement to make on the Government's attitude towards the scheme for the elimination of surplus spindles drawn up by a committee appointed by the Federation of Master Cotton Spinners under the independent chairmanship of Lord Colwyn; whether the scheme requires legislation to render it effective; and, if so, have the Government decided to introduce it as a matter of urgency?
§ Mr. RUNCIMANI have followed with deep interest the discussions which have been proceeding in the spinning section of the cotton industry as to methods of improving the condition and competitive power of the industry. I have been in close touch with representatives of the interests concerned. I have informed those responsible for the scheme to which my hon. Friend refers that if the proposals for the elimination of surplus spindles received the support of a sufficiently influential proportion of the trade, I shall be prepared to ask Parliament for statutory sanction for the collection of the necessary levy. As regards finance, the scheme on which the ballot is being taken is based upon a levy on 30 million running spindles. The committee responsible for the scheme state that such a charge would not impose an undue burden upon the industry if spread equitably over all firms. I have assured the committee that if, notwithstanding statutory sanction for the levy, they are unable to borrow the necessary loan on the security thus provided—and the success of the scheme is thereby endangered, the Government would find some way to assist them to borrow the money.
§ Mr. CROSSLEYWhile thanking my right hon. Friend for his reply, am I right in saying that in fact an adequate majority has been assured?
§ Mr. RUNCIMANThe answer to that question must turn on what is meant by "adequate." I am glad to say that there is a much larger majority for this scheme than for any of its predecessors.
§ Mr. THORNEHas the right hon. Gentleman got any approximate estimate of the number of redundant spindles in Lancashire?
§ Mr. RUNCIMANIt is very largely a matter of opinion. For the purpose of discussion, I have accepted the view of the representative committee.
§ 34. Mr. CROSSLEY(for Lieut.-Colonel Sir WALTER SMILES) asked the President of the Board of Trade whether he is aware that many owners of spinning mills are anxious to adapt their machinery to the spinning of Indian cotton but are unable to obtain the necessary finance for this; and whether the Government will be prepared to grant 1141 special assistance for this purpose and will issue a statement on the subject?
§ Mr. RUNCIMANMy information is that the plant now available in Lancashire for spinning Indian cotton, or capable of being adapted to such use at a moderate expenditure within the normal resources of the firms concerned, is sufficient to deal with a greatly increased consumption of Indian cotton and that the provision of finance by the Government for this purpose is neither necessary nor desirable. I may add that the consumption of Indian cotton in the United Kingdom in the first nine months of this year was three times as large as in the first nine months of 1932.
§ Mr. CROSSLEYIs my right hon. Friend aware that in the last three months it has gone down very heavily; and is he further aware that there are a large number of firms who are constantly anxious to spin this cotton but who cannot obtain finance at the present time?
§ Mr. RUNCIMANThe whole question is mixed up, not only with the increase or decrease during certain periods, but with technical problems which are of first-rate importance.