§ 44. Mr. V. Yatesasked the Chancellor of the Exchequer, in view of the further recent decline in the cycle industry, if he has now fully considered the recent representations made to him by the retail and manufacturing side of the industry; and what action he proposes to take.
§ Mr. SimonMy right hon. Friend has carefully considered these representations. but has no statement to make.
§ Mr. YatesIs the Minister not aware that even within the last fortnight a further decline has occurred and that one firm at Smethwick has declared 100 employees redundant, while 1,000 people are on a four-day week? Surely it is time that some action should be taken 1303 to relieve this industry before it is too late? Will he remember that it is not the hire-purchase facilities which we want but a lower price to enable improved sales as a result of a reduction of Purchase Tax?
§ Mr. SimonI had the pleasure of receiving the representatives of the industry myself, and my right hon. Friend certainly appreciates the industry's difficulties, but nevertheless I cannot, I am afraid, enlarge on my original Answer. I cannot make a pronouncement about possible changes in taxation.
§ Mr. Gordon WalkerDoes the Financial Secretary realise that the position is now really very bad, that it is causing unemployment, and that proper measures taken in this case could reduce unemployment in my constituency of Smethwick and in other areas where this industry is now suffering?
§ Mr. SimonIt is not as simple as that. There are various repercussions upon other competing industries which have also got to be considered.