HC Deb 09 July 1959 vol 608 c1555
37. Mr. G. M. Thomson

asked the President of the Board of Trade what steps he is taking to encourage the diversification of the jute industry by attracting a paper bag-making firm to establish itself in the Dundee Development Area.

Sir D. Eccles

The Government are prepared to build factories and to give financial assistance for suitable projects in Dundee, including paper bag manufacture.

Mr. Thomson

While thanking the President of the Board of Trade for that Answer, may I ask if he is aware that two Dundee jute firms have decided to diversify themselves by going into the manufacture of paper bags, but have announced that they are to set up a factory in England to do so on the ground of transport costs? Can the right hon Gentleman tell the House what efforts these firms made to persuade him to give the necessary Government help to establish a factory in the Dundee Development Area? Will he do his best to persuade these firms to refrain from this unfortunate decision?

Sir D. Eccles

My office in Scotland has been in touch with these two firms, who said that they had given full consideration to the possibility of setting up in Dundee, but that all the same, they had decided against it.