HC Deb 27 November 1962 vol 668 cc197-8
24. Mr. Bidgood

asked the President of the Board of Trade whether he is aware of the recent amalgamation between Courtaulds Ltd. and Kirklees Ltd.; and how many manufacturers of viscose rayon yarns will remain in this country after the proposal to close the Kirklees mills has been put into effect.

Mr. D. Price

Yes, Sir. Courtaulds will be the only British manufacturers of viscose rayon yarn after the Kirklees plant closes.

Mr. Bidgood

Is not my hon. Friend appalled at the situation whereby Courtaulds Ltd. can swallow up its only remaining competitor in the production of viscose rayon yarns, thereby putting 620 people out of work in my constituency by having said that it will close down the mill? Will my hon. Friend refer his right hon. Friend to the remarks that he made during the monopolies debate in this House last April when he said that a sensible judgment could not be reached in a particular case without a full examination of the surrounding circumstances? Will my hon. Friend ask his right hon. Friend to make a full examination of the surrounding circumstances and report the facts to this House and the Monoplies Commission?

Mr. Price

I think that I can assist my hon. Friend. The amalgamation has not materially altered the competitive position in the industry. Kirklees produce only 6 per cent. of the total United Kingdom output of viscose rayon textile yarn and 1 per cent. of the viscose rayon yarn and staple fibre output. Although Courtaulds will be the only British manufacturer of viscose rayon yarn, other forms of man-made fibres are developing with which viscose rayon yarn has to compete. The demand for viscose rayon yarn has declined in recent years, production has fallen, and capacity has been under-employed, and Courtaulds itself has closed some of its plants.

Mr. Bidgood

In view of the unsatisfactory nature of that reply, I beg to seek leave to raise the matter on the Adjournment.