§ (1) If, at any time while a price scheme is in force, it is represented to the Cotton Industry Board by any body appearing to them to be representative of the interests of persons registered under the scheme who carry-on business in the industry at a place in the United Kingdom outside the area within which the majority of the persons so registered carry on business in the industry, that the operation of the scheme is having the result that persons so registered who carry on business as aforesaid at that place are under a disability in respect of their so carrying on business by reason of matters arising 1533 on account of the distance of that place from that area, it shall be the duty of the Cotton Industry Board to inquire into the question whether the operation of the scheme is having that result, and to report to the Board of Trade their decision on that inquiry; and, if they decide that the operation of the scheme is having that result, they shall specify in the report the amendments (if any) which they think ought to be made in the scheme for the purpose of avoiding the said result.
§ (2) The Board of Trade shall consider any report made to them under the preceding Sub-section; and, if it appears from the report that the Cotton Industry Board have decided that the operation of the scheme is having the result mentioned in that Subsection, the Board of Trade may lay before Parliament the draft of an order making such amendments in the scheme as they consider necessary for the purpose of avoiding that result.
§ (3) If each House of Parliament, after a draft of an order is laid before it under the last preceding Sub-section, resolves that the order should have effect, the Board of Trade shall make an order in the terms of the draft.—. [Mr. Cross.]
§ Brought up, and read the First time.
§ 4.17 p.m.
§ The Parliamentary Secretary to the Board of Trade (Mr. Cross)I beg to move, "That the Clause be read a Second time."
I think it would be for the convenience of the House, subject to your permission, Mr. Speaker, if we could discuss at the same time a number of Amendments which relate to the question of an allowance for geographical disability. The cotton industry in Northern Ireland embraces most of the activities which there are in Lancashire, and, in particular, the activities of dyeing and bleaching. The dyer, for instance, urges that he is subject to a disability owing to the distance his works are situated from the main centre of the cotton industry, which is Lancashire. There are additional charges for transport, special packing, and so on, and it is felt that the minimum price should be reduced in his case to compensate him. At present there is a voluntary price scheme between Lancashire and the Northern Irish dyers which makes allowance for this disadvantage. The Northern Irish are entitled to quote below the price of Lancashire.
The Northern Irish attach great importance to receiving an allowance for this geographical disability, and the Lancashire industry, through the Joint Committee of Cotton Trade Organisations, are anxious that the Bill should cover North- 1534 ern Ireland, because otherwise there would be a danger of price-cutting and the upsetting of minimum price schemes. There have been long and rather difficult negotiations between the Northern Irish industry and the Joint Committee of Cotton Trade Organisations and the Board of Trade. It has been agreed that there should be provision in the Bill for geographical disability, and that the President of the Board of Trade should consult the Minister of Commerce for Northern Ireland before submitting to this House any scheme which, in his view, would affect the Northern Irish industry. There is no specific reference in this Clause or in any of the Amendments to Northern Ireland, because geographical disability might well apply to other remote regions, although we have not in fact any reason to suppose that there are any other sections of the industry which would be in a position to claim compensation for geographical disability.
The Amendment in the name of my right hon. Friend to Clause 9 permits the inclusion of provisions for reduced prices in the price schemes themselves. This, therefore, caters for the case in which there is already a voluntary agreement between the representatives of the industry in Lancashire and their opposite numbers in Northern Ireland. The Amendment on Clause 13 provides for where there has been no voluntary agreement previously arrived at. Under this Amendment, when a price scheme is under consideration by the Cotton Industry Board, the interests affected may make representations to the board, the board must report upon the situation, and recommend any modification which they think should be made. Their report goes forward to the Board of Trade with the scheme, and will, of course, finally come before the House if the Board of Trade approves the modification which is recommended. The new Clause provides for the third situation, where a price scheme is already in force, when the interests claiming compensation for geographical disability come forward to make their claim. Under this Clause. the interests concerned have in a similar manner to make representations to the Cotton Industry Board, there is a similar procedure for that board, the Board of Trade have to lay before Parliament the draft Order if they approve the regulations, and the matter has to be considered by the House.
1535 An Amendment on Clause 16 makes provision for the Board of Trade to consult the Northern Irish Minister of Commerce before laying before Parliament the draft of a scheme which appears to the President of the Board of Trade to affect Northern Irish interests. There are a few consequential Amendments and one other Amendment to which I ought to refer, on the First Schedule—in page 46, line 27, to insert, at the end certain words. These provide that in the case of a scheme for reduced prices because of geographical disability, it shall be the duty of the three independent members of the Cotton Industry Board, and not of the board as a whole, to make a decision. It is clear that the industrial members might be competitive of the Northern Irish interests, and might, therefore, be subject to a conflict of interests on a matter on which they were adjudicating.
§ Clause added to the Bill.