HC Deb 27 March 1956 vol 550 cc1973-8
The President of the Board of Trade (Mr. Peter Thorneycroft)

With permission, Mr. Speaker, I should like to make a statement about the London section of the British Industries Fair.

The House will recall that the British Industries Fair is in two sections. One section, which is at Birmingham, has always been the responsibility of the Birmingham Chamber of Commerce. The other section, which is in London, was the responsibility of the Board of Trade until 1954, when this responsibility was transferred to British Industries Fair, Ltd., a company formed for the purpose. Under the British Industries Fair (Guarantees and Grants) Act, 1954, the Treasury have guaranteed £100,000 to the company and the Board of Trade have made annual grants for publicity.

It has become clear, however, that the London section of the Fair in its traditional form no longer meets a general need, since most traders prefer to take part in specialised shows in which attention can be focused on the products of a particular industry. There has been a consequent decline in interest in the Fair, on the part of both buyers and exhibitors. Faced with these trends, Sir Ernest Goodale and his colleagues of the British Industries Fair, Ltd., have, nevertheless, been unsparing in their efforts to sustain the Fair, and I am glad to have this opportunity of paying a warm tribute to their work.

In spite of all they have done, however, the results of the Fairs in 1955 and 1956 are such that the directors have recently informed me that the Treasury guarantee of £100,000 will be insufficient to enable the Company to carry on and to meet its liabilities. After full consideration the Government have decided that, while they will meet by a Supplementary Estimate the net liabilities over and above the guarantee, and waive recovery of the £100,000 to be paid under it, it would not be right to provide public money for the Fair after the Olympia Fair next month, which will, therefore, be the last to be held in London.

I understand that the Birmingham Chamber of Commerce intend to continue the Fair at Castle Bromwich.

The Government are convinced that, in the changed circumstances of today, public money can be more effectively used in other ways for the promotion of our export trade. Accordingly, the Government intend that the money hitherto spent on publicity for the Fair will in future be used by the Board of Trade mainly in connection with overseas fairs and exhibitions at which British goods are shown and the prestige of our products upheld. The Government will consider, in consultation with the main industrial organisations concerned, how this can most effectively be done.

Mr. Bottomley

The House will have heard with great regret the decision to close the British Industries Fair which, except for the war years, has been continuously in being since 1915. May I ask the President of the Board of Trade how he squares the Government's decision with the opinion that the British Industries Fair, Ltd. would act in accord with modern times and more efficiently than the old British Industries Fair, conducted by his Department? I warned him at the time that the Fair would close.

May I also ask the right hon. Gentleman what will be done about overseas publicity in the British Industries Fair? The Castle Bromwich Section is to continue. Do the Government accept responsibility for the money to be incurred in overseas publicity? Can the right hon. Gentleman say whether the Exhibition's advisory committee was consulted about this, and, if so, what was its reply? I am sure that the country as a whole will regard this decision as a further example of the Government's lack of support for the export drive.

Mr. Thorneycroft

This is, of course, a Government decision, but the fullest consultation has taken place with the British Industries Fair, Ltd., and discussions have also taken place with the Federation of British Industries.

On the question of the way in which the money at present spent on overseas publicity should be spent in future, I hope that the Fair at Birmingham will be entirely self-supporting. It is an extremely successful Fair and it has been run at a profit and should be a self-supporting venture. Our object in these matters would be to devote the amount of money normally spent on overseas publicity—about £90,000 to £100,000—to the overseas fairs. Just which fairs we should put our weight behind will be a matter for consultation between the Government and the industrial interests concerned.

Mr. Gaitskell

While it is no doubt desirable—and we welcome the right hon. Gentleman's announcement—that Government money should be used to support overseas fairs, is it not very regrettable that at this moment of all moments, when we desperately need an increase in our export trade, the President of the Board of Trade should have removed the subsidy altogether from the British Industries Fair in London?

Mr. Thorneycroft

No, Sir, I do not think so. It is important to put the Government effort behind things which look successful, where a real need is shown. If one studies the figures, one will see that from 1948 onwards there has been a steady decline both in the number of exhibitors and in the number of buyers attending them. That is a clear indication that this is not the best way of supporting the export drive. It would be much better to spend our money overseas, where we want to sell the goods.

Mr. Gaitskell

Can the right hon. Gentleman give an assurance that the amount of money to be spent on helping overseas fairs will not be limited to the amount that happens to have been spent in guaranteeing the London Fair?

Mr. Thorneycroft

That is a question for the Chancellor of the Exchequer, and not for me. What I am saying is that the amount of money which has been spent up till now on overseas publicity will still be devoted to the export interests of this country.

Sir J. Barlow

Is my right hon. Friend aware that his announcement will be welcomed by many manufacturers and exporters? Is it not a fact that this money could much better be used in exhibitions abroad, especially those confined to particular industries, rather than in general exhibitions, where money can easily be wasted?

Mr. Thorneycroft

I am much obliged to my hon. Friend. That represents a widely held view in industry.

Mr. Harold Davies

Is the right hon. Gentleman aware that one reason for the failure of this Fair is the idiotic fact that the Western world is trying to cut off one half of the entire population of the world from trade? Can we have an assurance that when these fairs abroad are subsidised there will be better exhibitions than those in Milan and India, and, further, will the right hon. Gentleman subsidise the possibility of East-West trade and lift these foolish embargoes, which are undermining our prosperity?

Mr. Thorneycroft

As far as the London end of the Fair is concerned, where the consumer goods industries are exhibiting, there is very little on the strategic list at all.

Sir F. Medlicott

Is my right hon. Friend aware that to encourage our export trade one of the most urgent needs is to bring to an end strikes and inter-union quarrels, such as that taking place at Cammell Laird's shipyard, which are endangering millions of pounds' worth of valuable orders?

Several Hon. Members

rose—

Mr. Speaker

Order. We cannot go into an economic debate on this statement. If any hon. Gentleman has a real question to ask in order to elicit information, I will gladly hear him.

Mr. Bottomley

Will the President of the Board of Trade say whether consideration has been given to the foreign currency earned as a result of buyers coming to this country? Was that, together with the tourist trade, considered at the time of making this decision?

Mr. Thorneycroft

I very much hope that foreign buyers will continue to come, as they do come, to the many specialised exhibitions by our great industries. This decision does not detract from the export effort, but makes an alteration in its emphasis where it is most needed.

Mr. Collins

Can the right hon. Gentleman say that a part at least of this sum of money which is now to be paid abroad will be devoted to assisting the exhibiting of articles selected by the Council of Industrial Design either for inclusion in British exhibits or as articles for single exhibition in foreign exhibitions?

Mr. Thorneycroft

I can assure the hon. Gentleman that we maintain the closest co-operation with the Council of Industrial Design, to whose work I attach the greatest importance; but just how the money is spent is a matter really for discussion between the Government and the great industrial organisations themselves.

Mr. Shepherd

Would my right hon. Friend not agree that the real reason for the decline in the British Industries Fair is the growth of the specialised exhibitions, and that that, on the whole, is not an adverse circumstance? Has he considered to what extent the Board of Trade will help these specialised exhibitions?

Mr. Thorneycroft

I am sure my hon. Friend is quite right, that the real reason behind the decline is the growth of the specialised exhibitions. I think we ought not to deplore that, but rather be very proud of it. These exhibitions stand on their own feet and attract buyers from all over the world. As to giving them help, I do not think that they need any at present. They are firmly established and they will continue to attract people from many countries to see their goods.

Mr. S. Silverman

Since the right hon. Gentleman held out hope, at least, that the money saved in this way would not be withdrawn from support for the export trade, but would be used largely to assist the exhibition of British goods in fairs abroad, can he say whether that means that in his opinion the fairs abroad have been more successful than those in England? If so, can he say why?

Mr. Thorneycroft

I think there is a natural benefit in showing goods in the countries in which you wish to sell them.

Several Hon. Members

rose—

Mr. Speaker

Order. There is no Question before the House.