§ 7. Mr. Frank Allaunasked the President of the Board of Trade whether ratification of the £4 millions order for a 1419 British steel plant for Roumania is dependent upon facilities being given for Roumania to increase her exports to Great Britain; and what steps he proposes to take to increase quotas for imports from Roumania in 1963 and subsequent years to ensure that this order and other similar orders for heavy engineering goods are secured by British manufacturers.
§ Mr. ErrollI understand that this order is dependent on the issue of a Roumanian import licence, which is, of course, a matter for the competent Roumanian authority. The hon. Member will be glad to learn that quotas have today been agreed with the Roumanians which will provide for an increase of over 16 per cent, both ways during the twelve months from 1st October, 1962.
§ Mr. AllaunWhile thanking the right hon. Gentleman for that Answer, which is certainly a step in the right direction, may I ask him whether he is aware that, because of the great importance of this and similar orders to our steel works plant industry, there should be more than a 16 per cent. increase in our quota of imports from Roumania? Does this new agreement extend beyond the present duration of one year, which is too limited? We are exporting goods, such as steel works, on four-year arrangements, yet we have a limit of only one year for import permits.
§ Mr. ErrollThe arrangements usually run for twelve months. This is understood by both sides as a reasonable arrangement because it permits more frequent changes in the quota lists. As the amounts in both directions are increasing each year, the prospects for the Roumanians can be regarded as reasonably reassuring. But the greatest prospect for them to increase their earnings lies in better utilisation of existing quotas which were taken up to the extent of only 20 per cent. last year and expanding their sales of goods which are on open general licence.