HC Deb 16 April 1940 vol 359 cc768-9
7. Mr. Shinwell

asked the President of the Board of Trade whether he is in a position to make any statement as to the assistance of export trade by restriction of excessive supplies to home consumers?

Sir A. Duncan

In order to set free productive capacity, man-power and raw materials for the export trade by restriction of home consumption, the Board of Trade are making an Order to-day under the Defence Regulations which will have the effect of restricting to 75 per cent. of the pre-war quantity, supplies to home retailers of cotton and rayon piece goods and all articles made from such piece goods; a restriction to 25 per cent. will be applicable to linen goods.

Mr. Shinwell

Does the right hon. Gentleman propose to apply similar regulations to other industries for the purpose of stimulating exports? Can he also say whether his restrictive proposals are likely to have any effect upon employment?

Sir A. Duncan

The proposals are designed to bring about as easy a transfer from home to export production as is possible, keeping in mind the need of not dislocating employment. Other products are, of course, under review, and will be kept constantly under review. It may be necessary to add to the list.

Mr. Shinwell

As regards the state of the internal market in relation to the goods under review, can the right hon. Gentleman say whether he has taken into his calculation the possibility of an increase in the price level of these goods, because of a limited supply?

Sir A. Duncan

Yes, Sir, that has certainly been taken into account, and it is believed that the operation of the machinery of the Price of Goods Act will, over the greater range of the products now covered, be effective.

Sir Joseph Lamb

Has the attention of the right hon. Gentleman been drawn to the fact that certain Government works have drawn away men from those firms which are working for export, so that it is absolutely impossible for them to produce the goods, or at a price at which they can compete with other countries?

Sir A. Duncan

Yes, Sir, I am most conscious that there is a drawing away of labour from one section of industry to another.

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