HC Deb 26 April 1967 vol 745 cc1594-5
36. Mr. Arthur Davidson

asked the President of the Board of Trade when he expects the European Free Trade Association to make a study of non-tariff barriers to trade, including rebate and subsidy arrangements, in view of the effects on the Lancashire textile industry of any such arrangements in other European Free Trade Association countries.

Mr. Jay

Non-tariff barriers to trade are kept under constant review in E.F.T.A. and a, group of experts is currently studying Government aids, including rebate and subsidy arrangements.

Mr. Davidson

Would not my right hon. Friend agree that there is a suspicion in Lancashire that Portugal is offending the spirit if not the letter of existing E.F.T.A. agreements? In view of the disastrous effects which Portuguese imports are having on Lancashire, would my right hon. Friend press very hard for an early review?

Mr. Jay

If my hon. Friend has any evidence, which I do not have, that Portugal is contravening the E.F.T.A. agreements, I should be glad to examine it. But, as he knows, my expectation is that textile imports from Portugal over the coming months will be at a lower level than has been the case recently.

Sir Harmar Nicholls

Is it not rather important that the President of the Board of Trade should say that he has no evidence of Portugal infringing the regulations, otherwise doubt is cast against one of our partners in E.F.T.A.?

Mr. Jay

I did say so.

Mr. Sydney Silverman

Is my right hon. Friend aware that the expectation to which he referred just now is not shared in the industry generally and that the opinion is gradually spreading throughout Lancashire on both sides of the textile industry that the Board of Trade has simply ceased to care about what happens to the textile industry in this country as long as its own industrial arrangements are not concerned?

Mr. Jay

I must ask my hon. Friend to watch the figures.

Mr. Lubbock

Is the right hon. Gentleman satisfied that free activities on the part of trade unions are permitted in Portugal and that as a result wages have reached an appropriate level in that country and that there is not artificial depression of wages which results in unfair competition within E.F.T.A.?

Mr. Jay

The arrangements in Portugal are not my responsibility; but the faster industry develops in Portugal, the faster will wages rise.