HC Deb 17 June 1965 vol 714 cc869-71
10. Mr. Fletcher-Cooke

asked the President of the Board of Trade what quantities of cotton yarns were imported into the United Kingdom from Malta in the year 1964 and in the first quarter of 1965; and what proportion of these quantities was produced in Malta.

Mr. Redhead

851,000 lb. and 551,000 lb. respectively, all of which was, I understand, produced in Malta.

Mr. Fletcher-Cooke

Were not these yarns produced from a single mill in Malta, which was built with financial assistance from the United Kingdom given on the strict understanding and undertaking that no such yarn would be exported to the United Kingdom until 1966? Why in those circumstances have Her Majesty's Government allowed the import of this yarn in flagrant breach of the undertaking given?

Mr. Redhead

It is correct, as the hon. and learned Member said, that there is only one yarn producer in Malta and that he gave an undertaking in the terms suggested. Therefore, the firm has certainly exported in breach of the undertaking which formed part of the agreement to which the hon. and learned Member referred under which it received financial assistance from the Malta Government. Accordingly, licences have been refused for any further imports of Maltese yarn. The licensing arrangements did not come into operation, however, until 1st February. Since that date a licence was issued in respect of 270,000 lb. weight lying already in the United Kingdom for several weeks, but further licences have been firmly refused.

Mr. Barnett

Is my hon. Friend aware that the people of Lancashire are very much concerned about the position in the textile industry and are most unhappy that the President of the Board of Trade seems to be doing no better than his Tory predecessor? When can we hope to see our own policy implemented?

Mr. Redhead

I can only repeat that in this respect no further licences are being issued.

Mr. Fletcher-Cooke

Why, when it was known that there was power to refuse these illegal shipments, were they not rejected at Liverpool?

Mr. Redhead

They were contrary to the agreement, but they were not illegal. To have insisted on returning the quantities already lying for some weeks in the United Kingdom would have added very seriously to the already grave difficulties that the Maltese Government are facing in a serious unemployment problem. I think that in the exceptional circumstances the decision which was taken was right, but I add that no further licences are being issued.