Cotton Industry

HC Deb 20 February 1962 vol 654 cc192-4

23. Sir J. Barlow

asked the President of the Board of Trade whether he is aware that employers and unions in Lancashire are disappointed with his policy regarding the cotton industry arising from his visit on 8th December, 1961; and what action he proposes to take to improve the situation in the industry.

Mr. Erroll

When I visited Manchester I reminded the industry of the steps the Government had taken to help the cotton industry, both by limiting imports and by assisting reorganisation and re-equipment. I also undertook that, subject to our international obligations the Government would consider taking further action to restrain imports if disruption was threatened. I do not accept that the industry has any cause for being disappointed with this very positive policy. I am glad to note that imports to the United Kingdom have continued to drop from the high levels to which they rose following the exceptional conditions which existed in 1960.

Sir J. Barlow

Is my right hon. Friend aware that any action he took to restrict imports of grey cloth and yarn seems to have been quite ineffective and the trade as a whole is very disappointed at the little action he has taken?

Mr. Erroll

I do not agree with my hon. Friend's statement, because it is not only the action I took but also the action taken by the industry itself to secure inter-industry agreements restricting imports from Commonwealth countries. The fall in imports last year was very striking. Quarter by quarter it went down from 166 million square yards in the first quarter, through 138 million and 117 million, down to only 100 million square yards in the fourth quarter. This should give reasonable grounds for optimism in the industry.

Mr. Rhodes

Is the President of the Board of Trade aware that many of us are disappointed with the competitive ability of this industry, despite the millions of pounds of public money which have been poured into it in the last two and a half years?

Mr. Erroll

I am not going to pronounce on an expression of opinion of that sort.

Mr. J. T. Price

May I follow up the point made by my hon. Friend the Member for Ashton-under-Lyne (Mr. Rhodes)? Is the right hon. Gentleman aware that many people in Lancashire have come to the conclusion that the Government's only attitude towards the cotton industry is to regard it as an expendable unit in the general picture of overseas trade? Coupled with that, the view is seriously held by quite well informed people that the much lauded action of the Government in bringing before the House the Cotton Bill in 1958 was nothing more than an election bribe to prepare the shop window for the general election in 1959?

Mr. Erroll

No. The 1958 Cotton Bill was nothing of the kind described by the hon. Gentleman. Those in the industry who care to study carefully the very extensive measures of import restriction or control all round the world to safeguard the Lancashire industry will realise how much we have done for the industry and the considerable extent to which we have safeguarded its future prosperity.

Mr. Kenyon

Is not the right hon. Gentleman aware that merchants are importing cotton goods from Spain and Portugal and selling them in packets which have been used for many years to contain British goods? Will he take steps to bring an end to this practice?

Mr. Erroll

Merchants are free to import within the restrictive limits, and Spain is one of the countries to which restrictions apply.

Mr. G. Brown

Will the right hon. Gentleman note that that does not answer the question he was asked? He was asked if he will take steps to prevent British merchants—salesmen, retailers and wholesalers—putting Spanish goods into packages which over the years have been known to be associated with British goods only?

Mr. Erroll

I am sorry. I did not hear the supplementary question fully enough. I am grateful to the right hon. Gentleman for repeating it in his usual loud voice. The fraudulent use of packages or the misdescription of the goods contained in them are matters which can be attended to by existing legislation.

Mr. G. Brown

Will the Board of Trade deal with it?

Mr. Erroll

Anybody can deal with it, as well as us.

24. Sir J. Barlow

asked the President of the Board of Trade whether he is satisfied with the investment in new equipment in the cotton industry in view of the lack of confidence in the industry, and the nature of the Government's policy towards the import of grey cloth and yarn; and if he will make a statement.

Mr. Erroll

I am aware that investment in new equipment has been deterred to some extent by fears of competition from low-priced imports: but the marked fall in the level of imports over recent months, coupled with the limitation of imports of cloth from certain countries, should encourage firms to take advantage of the financial help available under the Cotton Industry Act, 1959.

Sir J. Barlow

In view of the difficulty of restricting the importation of cloth, will my right hon. Friend look into his powers under the anti-dumping legislation as they exist at present?

Mr. Erroll

Importation of cloth is substantially restricted at present, as I pointed out in answer to a previous supplementary question put by my hon. Friend. As regards the anti-dumping legislation, the law can be applied if an applicant makes a successful application for it to be applied.