§ 36. Mr. Bruce-Gardyneasked the Minister of Technology if he will make a statement about the effect of the quota system for imports of jute goods in its first year of operation, and about his plans for future adjustments in quotas.
§ Dr. Ernest A. DaviesThe quota system for imports of jute goods came into effect on 1st May, 1969, and has therefore not yet been in operation for a full year. The Department is currently reviewing the operation of the system with a view to deciding the level of the quotas in the year beginning 1st May, 1970. Present indications are that in the first quota year an increase in imports from Asian countries of the jute goods subject to quota restrictions will be more than offset by a decline in imports from other sources, notably E.F.T.A. and the Irish Republic. We hope shortly to announce quota levels for the 1970–71 quota year.
§ Mr. Bruce-GardyneHas the Parliamentary Secretary noticed that following the introduction of the quota system there has been a marked increase in redundancies locally in Scotland? In view of this, and in view of the pledge which the Prime Minister gave in 1964 in Dundee that jute jobs would be safe under Labour, what does he propose to do to control the situation when he comes to revise the quotas?
§ Dr. DaviesThe hon. Gentleman's Question relates to the quota system. Both sides of industry have attributed the decline in demand for Dundee jute goods, not to imports but mainly to the effect of credit restrictions. Another very important factor is the many substitutes appearing for jute which end users are taking up.