HC Deb 22 February 1955 vol 537 cc1050-2
26. Mr. Jay

asked the President of the Board of Trade the Government's proposals for averting the threat of increasing unemployment in the cotton industry.

Mr. P. Thorneycroft

There is very little unemployment in the cotton industry at present. Future trends will depend on many factors and not the least of these is confidence. The industry's problems are associated at least as much with exports as with imports and I have arranged to discuss these problems with the Cotton Board.

Mr. Jay

Is there not already a good deal of short-time working? Is it not better to avert unemployment rather than wait for it actually to break out? Does not the President think it is time to make a high-level approach to the Indian Government to try to get trade on to a rather fairer basis, as both the raw material prices and the respective tariffs are at present on an unfair basis?

Mr. Thorneycroft

The short-time working in cotton and rayon spinning and weaving last week was about 1 per cent. About half of it was in the fine spinning section, which is not directly affected by the foreign grey cloth imports. I do not say that that means that foreign grey is not a problem; I am merely giving the facts about the short-time working. I think that, on the whole, it would be better to await the discussion which I am to have with the Cotton Board, when we can go into these facts and see what detailed proposals can be put forward.

Mr. S. Silverman

Will the right hon. Gentleman bear in mind that one way of coping with the threat of unemployment in the cotton industry is to diversify industry in that area, and that it was with that object that more than a year ago he declared part of the area a Development Area, but that so far there is the deepest and most widespread disappointment at the results of his endeavours?

Mr. Thorneycroft

I am most grateful to the hon. Gentleman for reminding me and the House of the fact that it is in that very area that we are in process of building the largest development factory ever undertaken by the Board of Trade under any Government.

Mr. J. T. Price

What causes the President to suppose that at his proposed interview with the Cotton Board he will be in a position to give it better answers than the Parliamentary Secretary was able to give at the meeting last week in Manchester? Why could the answers not be given then?

Mr. Thorneycroft

What I am asking the Cotton Board to do is to come along to me and to make certain proposals and suggestions about the kind of specific action which it has in mind.

Mr. Drayson

Will the President consider publishing the details of the discussions with the Cotton Board as a White Paper after the discussions have been concluded?

Mr. Thorneycroft

We had better see what the discussions are.

Mr. Gaitskell

While it is no doubt desirable that the President of the Board of Trade should have further talks with the Cotton Board, is it not time that he made plans for serious talks with the Indian Government? Does he not agree that there is no doubt that the Indian producers do have a definitely unfair advantage in the price of the raw material, and that there is great unfairness in regard to the tariff structures in our country and in India? If these are the facts, is it not high time that the President took this matter seriously and arranged, if necessary, to go to India himself to discuss the matter?

Mr. Thorneycroft

Very full discussions upon these issues did take place between the Indian Government and my right hon. Friend the Minister of State. Certainly I am not saying that that is the last word between us and the Indian Government. But, at the same time, it would be very appropriate if first of all we had further discussions with the Cotton Board about imports of grey cloth. On the export side, I should like to emphasise again that I do not think that it is a fair situation that they should be charging the rates of tariff that they are charging at the present time. That is a very difficult thing for them to defend.

Mr. H. Wilson

Is the President aware that the Minister of State last week was reported as having specifically said in Manchester, in answer to a question, that he did not have negotiations with the Indian Government? Now the President is telling us the the Minister of State had discussions with the Indian Government. Can we be told exactly what did happen?

Mr. Thorneycroft

Certainly it is very important to emphasise that no question of negotiating the Indian Trade Agreement arose at that time and it has not arisen at this.