HC Deb 21 June 1960 vol 625 cc212-3
38. Mr. C. Osborne

asked the President of the Board of Trade if he is aware that the Calico Printers' Association's bid for United Turkey Red is causing disquiet in the textile trade, and monopoly is feared in textile printing; what steps he proposes to take to overcome the danger of monopoly; and if he will make a statement.

The President of the Board of Trade (Mr. Reginald Maudling)

I am aware that apprehension has been publicly expressed in relation to the employees of United Turkey Red.

If it appears that there is a danger of harm being caused by the extension of monopoly conditions a reference to the Monopolies Commission would be the normal course.

Mr. Osborne

I should like to ask three supplementary questions. First, has the Calico Printers' Association given any undertaking that the United Turkey Red works in Scotland will not be closed down and workers thrown out of their jobs? Secondly, how can the Chancellor of the Exchequer succeed in his policy of reducing prices if price-raising monopolies are allowed to increase the scope of their activities? Thirdly—and I hope I shall not be thought to speak in a hostile manner—is the Board of Trade putting its foot on the accelerator or on the brake of the Monopolies Commission?

Mr. Maudling

A bid has been made, but the closing date for acceptances is not until 29th June. I understand from a public statement that the Calico Printers' Association has taken no decision yet about the future of the Dumbarton works. In fact, the Monopolies Commission investigated the calico printing process in 1954 and made a number of recommendations, which were substantially carried into effect. Should a further reference to the Monopolies Commission appear advisable we should not hesitate to make one.

Mr. Steele

As there is deep apprehension in my constituency about the future of these work s, and as the Government, under D.A.T.A.C., gave a loan of £400,000 to this company last year for the purpose of providing employment in these works, can the President of the Board of Trade say whether the board of directors consulted the Board of Trade before they issued a statement to their shareholders advising them to accept the Calico Printers' Association's offer?

Mr. Maudling

They were under no obligation to do that. The position of the D.A.T.A.C. loan is fully safeguarded. The Government would be very sorry to see anything that aggravated the unemployment situation in this part of Scotland.

Mr. Jay

As this is yet another case—following the recent one concerning bicycles—of an uncontrolled take-over bid possibly leading to a monopoly, is the President of the Board of Trade in this case going to take some steps before the monopoly is set up, and not simply wait to refer it to the Monopolies Commission afterwards?

Mr. Maudling

That goes rather wide of the original Question. I can act only within the powers that Parliament has given me.