§ 26. Mr. Sutcliffeasked the President of the Board of Trade whether he has any statement to make about the application of the policy of concentration of production to the cotton industry?
§ Mr. LytteltonThe shortage of raw cotton and the need to maintain deliveries of raw cotton to certain mills, about 140, heavily engaged on Government work, has made it necessary in the last few weeks to withhold raw cotton from some 60 mills, many of which have now closed down. Mills in the former category have been provisionally classed as "nucleus" mills and will be expected to contribute by a levy, the details of which are under consideration, funds for the care and maintenance of the closed mills. This will be administered by the Cotton Board, which will try in every other way to help closed mills to cope with their problems, including those of maintaining goodwill and trading connections.
For the remaining mills in the spinning section and for all concerns in the weaving section, except a limited number whose status may have to be determined without delay, concentration by voluntary 340 arrangement is still open to firms desiring to take that course. I hope that many of them will do so, for I feel sure that where these voluntary arrangements can be made they greatly simplify such problems as transfer of contracts and maintenance of goodwill which are inevitable under concentration. Firms able to make proposals should discuss them as soon as possible with the Cotton Controller, who will be in a position to ensure through his contacts with the Department concerned that the proposals are following the proper lines. The Cotton Board has issued a statement for the information and guidance of the firms concerned.
The problem is urgent; uncertainty is bad for the industry and 1 must set a limit to the period within which these voluntary arrangements can be submitted; the limiting dates accordingly have been fixed as 15th May for cotton spinning firms and 27th May for cotton and rayon weaving firms. It is perhaps unnecessary to add that unless voluntary arrangements can be submitted the Government will be driven to decide which mills can remain in operation.
§ Mr. ShinwellIf 60 mills are to be closed down, whether as a result of voluntary agreement or compulsion by the Government, are arrangements in hand rapidly to absorb the displaced workers and use them in the war effort?
§ Mr. LytteltonYes, Sir.
§ Mr. ShinwellWhat are the arrangements? Are the industries prepared, and so on?
§ Mr. LytteltonThe arrangements are under the Ministry of Labour.
§ Mr. ShinwellHave they nothing to do with the right hon. Gentleman?
§ Mr. LytteltonIt is my duty to keep closely in touch with the Ministry of Labour and see that all the workers displaced are absorbed as quickly as possible in munitions work.
§ Mr. SilvermanIf it is not known which mills are to be closed down, or when, how can it be possible that arrangements are now in hand to absorb the labour?
§ Mr. LytteltonThe reason is that the cut in raw materials has necessitated 60 mills being closed down.
§ Mr. SutcliffeWill my right hon. Friend especially emphasise to individual mills how advantageous it will be to them to produce immediately plans among themselves for concentration rather than to wait until they are forced to do so?
§ Mr. LytteltonYes, Sir. That has already been done.