Textile Industry (Hansard, 12 February 1969)

§ 14. Mr. Barnett
asked the President of the Board of Trade if he will set up an inquiry into the proposed takeover of English Calico Limited by Courtaulds Limited, and into the eventual structure of the textile industry as a whole; and if he will make a statement.

§ 1. Mr. Sheldon
asked the President of the Board of Trade if he will make a statement on his policy regarding the proposed merger between Courtaulds and English Calico.

§ 43. Mr. Peyton
asked the President of the Board of Trade if he intends to refer the bid made by Courtaulds for English Calico to the Monopolies Commission.

§ Mr. Crosland
As I announced in reply to my hon. Friend, the Member for Farnworth (Mr. Thornton) on 6th February, Courtaulds has agreed at my request to withdraw its current proposal to bid for English Calico. I shall examine the future structure of the industry in the light of the forthcoming Productivity and Efficiency Study and in close consultation with the industry and the Textile Council. In particular, I shall have the advice, not only of the Chairman of the Textile Council, but also of the Chairman of the I.R.C.—[Vol. 777, c. 167–8.1

§ Mr. Barnett
I congratulate my right hon. Friend on not allowing the industry's 1298 future to be decided in an arbitrary fashion. However, is there not a need for further rationalisation of the industry? Is it not a fact that the Textile Council, by the very nature of its membership, is not really fitted for this type of examination? Would it not be better to have an inquiry other than a private Departmental one, the results of which could later be published so that we could all consider them and debate them fully in the House?

§ Mr. Crosland
I certainly agree with my hon. Friend that further rationalisation is necessary. On the other hand, I do not agree with him that we need still one more outside independent study. This industry has been endlessly studied and endlessly reported on; and now that we know the facts it is a matter of making up our minds.

§ Mr. Peyton
Does the right hon. Gentleman think that the right place to decide upon rationalisation is in the Board of Trade. Does he not think that in this confusion which we are all getting into, with the welter of monopolies and mergers which are taking place, it would be much better if the matter were reviewed under a procedure similar to the American anti-trust laws, and the matter could then be heard by a court which was independent and these very important matters would not be decided by the say-so of officials or Ministers?

§ Mr. Crosland
The main difficulty about doing that is that we do not have the American anti-trust laws. If we were to have a court of the kind that has been suggested, it would involve elaborate legislation and the court could not possibly exist until a year or two years had elapsed. I personally—I am sure that the industry will fully agree with me here—am not prepared to accept that further degree of delay.

§ Mr. Fletcher-Cooke
When the President speaks about the inquiry, is he referring to the inquiry that has been going on for some time by the Textile Council? If so, when does he expect the report? If not, is there a new inquiry as a result of the bid that has recently been rejected by the Board of Trade?

§ Mr. Crosland
There is, on the one hand, as the House well knows, the Textile Council's Productivity and Efficiency Study, which I daily expect 1299 to receive. There is, on the other hand, what I am now proposing in the light of that study and other reports on the industry. I am now proposing to ask my hon. Friend the Minister of State to lead a team, which will consist of officials from interested Departments, which will have access to the Textile Council and its staff, and which will draw on the advice of the Chairman of the I.R.C. and any other outside advice which may prove to be necessary, to make recommendations on further rationalisation in the light of the Council's study.

§ Sir K. Joseph
Does the right hon. Gentleman expect that if the results of this private Departmental and relatively academic inquiry are not acceptable to industry he will have to introduce legislation?

§ Mr. Crosland
This will certainly not be an academic inquiry. My hon. Friend the Minister of State, may, for all I know, have academic qualities, but he also has plenty of non-academic qualities. We intend this to be a very realistic and commercially orientated study. As to what will happen if the industry does not agree with the conclusions we reach, I think we had better wait and see what happens.