HC Deb 29 November 1955 vol 546 cc2096-7
11. Mr. Bottomley

asked the President of the Board of Trade why he declines to make representations to the United States Government against the addition to the lowest foreign bid of 12 per cent. for the purpose of appraising bids.

Mr. P. Thorneycroft

The new rule adopted by the Department of the Interior is a clarification and an improvement on what has happened before. Previously a low bid by a foreign firm had little, if any, chance of success if the lowest United States bidder intended to manufacture the plant in an area of substantial unemployment as defined by the Secretary of Labour. In the circumstances, it would be inappropriate to make representations to the United States Government against the decision.

Mr. Bottomley

It may be an improvement upon past procedure, but it is still bad; it prevents trade. Surely the President ought, on behalf of the Government, to make representations against this development?

Mr. Thorneycroft

We have to maintain some sense of proportion about this subject. Had we an area in this country where the unemployment level was 6 per cent., we should be trying to introduce some form of protection for it.

Mr. Gower

But will not my right hon. Friend look at this again? Is it not the case that there is virtually no bicycle industry in America comparable with our industry but yet they have restricted the import of bicycles from this country?

Mr. Thorneycroft

I have already stated my view about the bicycle position in the United States very plainly, but I think that is different from this question of areas of substantial unemployment.

Mr. H. Wilson

Is not the President aware that we have never sought to use protection of any kind, whether tariff protection or refusal of bids, as a means of dealing with the problem of one of the Development Areas, but that both parties have accepted the Distribution of Industries Act? Should not the right hon. Gentleman suggest to the American Government that the right way to deal with the problem would be by the use of similar procedure?

Mr. Thorneycroft

Whatever I suggested to the United States, I am bound to say that this arrangement under which the American firms get virtually 12 per cent. tariff protection is better than the system which existed before, when, if there was an area of substantial unemployment, we had no chance whatever of getting a contract.

16. Mr. Sorensen

asked the President of the Board of Trade how many tenders from this country for United States contracts, during the past five years, have proved to be the lowest and according to requirements, but have subsequently been rejected for other reasons; and what is the approximate total value of the orders thus lost.

Mr. P. Thorneycroft

I regret that this information is not available since Her Majesty's Government do not necessarily hear the results of all the tenders for United States contracts.

Mr. Sorensen

Does not the President feel that he would be fortified in the prospective conference in Geneva if he had this information, and would it not be of some benefit to the whole House if the information were obtained?

Mr. Thorneycroft

It would be a rather large undertaking to ask every industry to inform me of the tenders which they had put in, those which were accepted and those which were rejected. Even then I should be hard put to it to know the precise reasons for the rejections.

Mr. Bottomley

How can the President say that he is giving every encouragement to British exporters when he does not make representations against trade restrictions of this kind in the United States?

Mr. Thorneycroft

I have never hesitated to make representations in cases where I think they can properly be made.