HC Deb 11 March 1948 vol 448 cc1396-7
8 and 10. Sir Waldron Smithers

asked the President of the Board of Trade (1) if he is aware that the shipping trade with New Zealand, Australia, Canada and South Africa in wool dress goods and woollen coatings is decreasing rapidly; and whether, in view of the fact that there are large stocks in Britain, he will reduce the coupon value of these goods for the benefit of home consumers;

(2) whether, in view of the fact that the accumulation of woollen goods has got so large that several hundred thousand coats and dresses were recently offered to buyers from the Ruhr at job prices, and that in view of the scarcity of coupons and the high coupon value people in Britain were unable to buy them, he will reduce all 54-inch goods made of wool of every description to three coupons a yard, and reduce them to 12 coupons for each garment of made-up goods.

Mr. H. Wilson

I would refer the hon. Member to the replies given to him on 5th February and to the hon. Member for Mile End (Mr. Piratin) on 10th February.

Sir W. Smithers

Is the right hon. Gentleman aware that since those Questions were asked the situation has deteriorated? When will the right hon. Gentleman realise that the nationalisation—not nationalisation, but the State control—of these industries is ruining England?

Mr. Wilson

We have not nationalised the shops, the mills, or the industries producing these commodities.

Sir W. Smithers

I withdrew the word "nationalisation" and said "State control."

9. Sir W. Smithers

asked the President of the Board of Trade if he is aware that the increase in the cost of wool, wages and coal has so increased costs of production in the woollen goods trade that exporters are finding it increasingly difficult to sell abroad; and what steps he proposes to take to remove this difficulty.

Mr. H. Wilson

I am aware that the costs of production of wool cloth have been increasing for some time past, but the principal factor has been the increase in the price of raw wool, and this affects foreign producers equally. Other costs have increased by only about 5 per cent. in the past year. I have no reason to suppose that the wool industry is in general unable to meet foreign competition, but in any case I trust that the industry will press ahead with its efforts to achieve the maximum productive efficiency, which will be the surest method of maintaining its competitive position.

Sir W. Smithers

Is the right hon. Gentleman aware that these Questions are based on facts? Is he also aware that if he breaks the law of supply and demand, that law will break him, the Government and the country?

Mr. Wilson

Yes, Sir, I know that these Questions are based on fact. The facts are that the biggest increase in cost has been the price of raw wool, which is completely uncontrolled, and follows the law of supply and demand, with the price being dictated on the world market according to the pressure of demand from this country and other countries.

Mr. Osborne

Is the right hon. Gentleman aware that at the end of the war the British Government controlled the whole of the wool of the world, and that they have allowed it to be sold abroad at a cheaper price than it can be produced in our own industry?

Mr. Wilson

If hon. Members opposite are going to press me to re-impose control, I would naturally wish to give that careful consideration.

Mr. MacLeod

How much profit did the Government make from selling wool by public auction?

Mr. Wilson

I should want notice of that Question.