HC Deb 15 February 1971 vol 811 cc1193-4
55. Mr. Gregor Mackenzie

asked the Secretary of State for Trade and Industry if he has completed his investigations into the difficulties being experienced by the paper and board making industry; and if he will make a statement on his proposals to deal with the problem.

Mr. Ridley

The paper and board industry has not asked me to investigate its problems but I am ready to discuss the situation if the industry thinks this would be helpful.

Mr. Mackenzie

Is the hon. Gentleman aware that, even if the industry has not directly asked him to investigate, many of my hon. Friends on this side of the House have been asking him to do so since last July, and that the serious situation in Scotland, where a couple of mills have been closed and others are having difficulties through the decision of the Government to remove investment grants, is having an adverse effect on the development of the industry in Scotland? Would he take some more positive action in relation to this industry?

Mr. Ridley

I do not see how the decision to remove investment grants in future could have any possible connection with the present difficulties of certain concerns in Scotland. It is true that the paper industry is facing very heavy competition from Scandinavia, but that, of course, is part of the bargain of entering the European Free Trade Association, and it would be quite improper to attempt to protect it from competition of this sort. Nevertheless, if there are any problems which representatives from the industry would like to bring to me I should be only too delighted to discuss them.

Mr. Tom King

Can my hon. Friend say whether informal discussions between his Department and the Scandinavian producers can be accelerated and is there not evidence that Scandinavian producers are in breach of the E.F.T.A. agreement not to abuse their position as dominant producers?

Mr. Ridley

Negotiations are going on about that matter and I should not like to anticipate their outcome or prejudice them by saying anything at this stage, but I can assure my hon. Friend that these discussions are being carried on as urgently as possible.