48. Captain ARTHUR EVANSasked the Prime Minister whether he is aware that on 24th April the Great Western Railway Company announced that owing to a further decline in trade due partly to sanctions against coal exports to Italy, resulting in a loss of exports from South Wales from two to three million tons per annum, Penarth Dock is to be closed; whether any Government Department was consulted by the Great Western Railway Company prior o this decision being made; whether the Government propose to locate any of the new Government works, or part of Woolwich Arsenal, in 905 this area to compensate for the loss of salaries, wages, and other local revenues; and whether he is now in a position to announce his decision regarding the question of State assistance for South Wales generally, and economic restoration throughout the region?
§ The PRIME MINISTERI am aware that the Great Western Railway Company has announced that owing to the continued decline in coal exports it is closing Penarth Dock temporarily. I must, however, correct my hon. and gallant Friend's suggestion that sanctions against Italy have resulted in a loss of exports from South Wales of from two to three million tons a year. Most of the fall in exports, in fact, took place before sanctions were instituted. As regards the second part of the question, the general manager informed my right hon. Friend the Minister of Transport on the 17th instant that the proposals for the temporary closing of the dock were again before the company, and that a formal announcement would be made as soon as the decision had been confirmed by the board. As regards the third part of the question, I am not in a position to add to the statement on Government factories made by the Lord President of the Council in the Debate on 2nd March last. The more general question raised in the last part of the question cannot be discussed within the limits of a Parliamentary reply, but my hon. and gallant Friend will be aware that the Government's policy in relation to both Special Areas and areas of heavy unemployment has been fully explained on recent occasions.
Captain EVANSIs the Prime Minister aware that the reason for the falling off in trade because of sanctions was given by the Great Western Railway Company themselves; and is it not a fact that, although it is true that coal is not on the prohibited list so far as sanctions are concerned, the effect of sanctions has been to make it impossible for Italy to establish sterling credits in London which would enable her to pay for South Wales coal? With regard to the second part of the reply, did His Majesty's Government make any protest to the Great Western Railway Company when this decision was made known to them; and will my right hon. Friend be kind enough to deal with the part of the question 906 which asks whether it is proposed to locate any Government works in this area to compensate it for loss of trade?
§ The PRIME MINISTERWith regard to the last part, I said I could not add to the statement that has been made by the Lord President of the Council. That statement stands, and until the land has been acquired it is inadvisable to say anything further. With regard to exports, the difficulty has very likely been quickened by the imposition of sanctions, but the difficulty for a long time has been in securing proper payments from Italy for goods. That is a difficulty that arose before sanctions were put on.
§ Mr. G. HALLWill the right hon. Gentleman consult with the chairman of the Great Western Railway Company as to the cause of the falling off in the export coal trade of South Wales, and are the Government taking any action to deal with this serious loss of trade?
§ The PRIME MINISTERI was not on this occasion consulted, but I agree that it is one of the many difficult situations with which this country is faced in view of the difficulties of international trade and of remittances.
§ Mr. HALLWill the right hon. Gentleman consult with the chairman of the Great Western Railway Company as to his opinion of the cause of the closing down of this dock and the loss of trade in South Wales generally?
§ Mr. W. ROBERTSIs it true that the Italians were owing South Wales coal-owners £2,000,000 before sanctions were adopted?