HC Deb 08 February 1955 vol 536 cc1735-8
57. Mr. Burke

asked the President of the Board of Trade how many square yards of cloth were imported from Japan and India, respectively, in 1953 and 1954; and how much in each year was for re-export.

The Minister of State, Board of Trade (Mr. A. R. W. Low)

Imports of cotton cloth from Japan were 38 million square yards in 1953 and 52 million square yards in 1954. Imports from India were 16 million square yards of cotton cloth in 1953 and 133 million square yards in 1954. Imports from Japan were almost wholly of grey cloth for re-export after processing. Imports from India were also almost wholly of grey cloth. No exact figures are available of the amount of this Indian cloth re-exported in 1954 after processing; but it is estimated to be about one half.

Mr. Burke

Is the Minister aware that those staggering figures of imports from India have meant, for Burnley, that two large mills closed down in January, one large mill closed down last week, and others are on short time? Is he aware that the Government's inactivity in allowing cotton surpluses to be unloaded in this country is causing depression and grave anxiety throughout the whole of Lancashire? What are the Government doing about it?

Mr. Low

I am aware that anxiety is felt in some quarters, although I was not aware of the exact matters which the hon. Member has mentioned. He knows that this question was raised last Thursday with my right hon. Friend the President of the Board of Trade, and I would refer him to the answers then given.

Mr. Burke

But the answers given by the right hon. Gentleman last Thursday conveyed no satisfaction and no hope for Lancashire. What I want to know is what the Government propose to do to help Lancashire.

Mr. Low

As the hon. Member is aware, we have a trade agreement with India, Article I of which states that we should let in these products free of duty.

Mr. Fort

Can my right hon. Friend tell me whether the very heavy imports of cloth have yet caused any unemployment, or have other mills absorbed those who have been displaced from the mills to which reference has been made?

Mr. Low

There is no evidence that up to date the imports from India or from Japan have caused unemployment. In fact, as I think my right hon. Friend told the House recently, there are approximately four vacancies for every one unemployed in the textile industry. That is the latest figure which we have available.

Mr. J. T. Price

Can the Minister say with greater precision what proportion of the 130 million square yards of cloth from India consists of grey cloth and what proportion consists of finished goods? Is he aware that in all the big stores of this country large quantities of finished piece goods can be seen which have been imported into this country in the finished state?

Mr. Low

I do not think the hon. Member can have heard my answer. I said the imports from India were almost wholly of grey cloth.

Mr. Price

Can the right hon. Gentleman give the figures?

Lieut.-Colonel Schofield

Is my right hon. Friend aware that the short-time working which has shown itself in the manufacturing section is also beginning to show itself in the spinning section, and that unless there is some curtailing of these imports of Indian grey cloth there will be larger unemployment in Lancashire?

Mr. Low

As my hon. and gallant Friend knows, my right hon. Friend has stated publicly that, in consultation with the industry, he is carefully watching the imports of cloth from India which are retained in the home market. But, as my hon. and gallant Friend knows, and as I have said, some of these imports are for re-export. My right hon. Friend has said that if the position becomes too threatening some safeguarding action might become necessary.

Mr. Gaitskell

Is the Minister aware that the figures for Indian imports which he has just given will come as a considerable shock to the country? Does he not think that it is very unfair that we should allow Indian imports into this country free of import duty when India imposes severe restrictions on textile exports from this country?

Mr. Low

I do not think the figures will be a surprise to everyone. I agree with the right hon. Gentleman that the disparity between the treatment which the Indians give our textiles and the treatment which we give theirs appears to be unfair, and I made that point when I visited India in January.

Mr. Gaitskell

May we take it that the Government will pursue this matter further with the Indian Government? What action are they taking about it?

Mr. Low

The right hon. Gentleman is aware that in September last year the Indians liberalised their quota, to use an expression which he will understand. At that time they assured us that they would consider the rate of duty on our textiles in the light of actual imports into India since they liberalised the quota. No evidence is available to them at the moment, but they reaffirmed to me when I was in India that they would hold to that assurance.