HC Deb 04 April 1939 vol 345 cc2594-5
14. Mr. Kennedy

asked the President of the Board of Trade what action is to be taken by the Government to deal with the problem of unemployment in the jute industry in Scotland; whether he is aware that the very serious situation is aggravated by the unrestricted and increasing imports of jute goods from India; that it is impossible for home-producers to compete against the product of cheap Indian labour; and whether he will consider revising the trade agreement with the Government of India to meet this difficulty?

Mr. Stanley

Unemployment in the jute industry in Scotland has fallen substantially during the past 12 months. A large part of the industry is working to full capacity, and imports of jute goods from India have not increased. In these circumstances, I see no necessity for proposing the revision of the trade agreement which has just been signed between the United Kingdom and India. As regards the future, I would remind the right hon. Gentleman that the agreement contains a provision for consultation between the two Governments in the event of circumstances arising which, in the judgment of either, necessitate a variation of its terms.

Mr. Kennedy

Has not the right hon. Gentleman seen protests from the employers of the jute industry, especially in Scotland, regarding the introduction of this cheap Indian product to this country?

Mr. Stanley

Yes, Sir, I have seen protests, but at the same time I cannot forget that the Government have been forced to place a very considerable part of their orders for sandbags in India because Dundee was so busy that it was unable to fulfil the demand.

Mr. Kennedy

Can the right hon. Gentleman tell me the number of unemployed jute workers there are in Scotland according to the official statistics of the Ministry of Labour?

Mr. Stanley

Not without notice.