§ 22. Mr. Errollasked the President of the Board of Trade the reasons for the recent increase in price of American raw cotton by 1d. per pound and Egyptian raw cotton by 2d. per pound; whether the trade was consulted prior to the increase being made; and for what period can the cotton industry be assured that there will be no further increases in price.
§ Mr. MarquandThe reason is the advance in the overall cost of Govern- 1592 ment purchases of cotton since April, 1944, when the Control's selling prices were last fixed. The cotton trade was not consulted. It is hoped to maintain this general level for an appreciable period.
§ Mr. ErrollDoes the hon. Gentleman realise that while this absolutely fortuitous system of price fixing remains in force, manufacturers ought to be entitled to know that these prices will be maintained for a considerable time?
§ Mr. MarquandI hope they will be maintained for a considerable time, but we must naturally have regard to the movement of prices elsewhere. If prices rise steeply elsewhere we may have to follow them in order not to put ourselves into the position of making losses.
§ Mr. MarplesWill the hon. Gentleman consider setting up some machinery so that cotton spinners can be consulted?
§ Mr. MarquandNo, Sir, we cannot possibly contemplate consulting people who might, in consequence, be placed in a position where they could use that inside knowledge for making profit.
§ Mr. R. S. HudsonHow does the hon. Gentleman propose that manufacturers of cotton goods, who make contracts for forward delivery, will be able to cover themselves against these increased costs?
§ Mr. MarquandThere is a full system of compensation. Any spinner who was short of cotton at the time the price changed can obtain compensation under the cover scheme now in operation by the Control.
§ Mr. LeverCan my hon. Friend say what would be the price if the Liverpool Futures Market were operating, and the fortuitous system at present ruling were destroyed at the request of the Opposition?
§ Mr. MarquandThe current price at which the Control is selling American cotton to spinners in Lancashire is less than the New York spot price.
§ Sir John BarlowWill the hon. Gentleman issue a profit and loss account of these charges?
§ Mr. MarquandThat is another question.
§ Mr. BossomWhen the hon. Gentleman says that compensation will be paid, is it not a fact that it will be paid by taxing the people of this country?
§ Mr. MarquandNo, Sir.
§ Mr. BossomWhere will the money come from?
§ Mr. MarquandIt is all part of the transactions of the Cotton Control.
§ Mr. MarplesIs the hon. Gentleman aware that this is against the spirit of the Bretton Woods Agreement?
§ Mr. MarquandNo, Sir.