HC Deb 15 November 1971 vol 826 cc18-20
18. Mr. Barnett

asked the Secretary of State for Trade and Industry what action he is proposing arising out of his constant review of the effect on the textile industry of the ending of import quotas and the substitution of a 15 per cent. tariff; and if he will make a statement.

Mr. Ridley

I have nothing to add to the reply given to the hon. Member on 25th October.—[Vol. 823, c. 232.]

Mr. Barnett

Is the hon. Gentleman aware that that is an appallingly complacent answer, in view of the fact that 59 mills have closed in this year already, that another 20 closures are in the pipeline, and that there is an enormous amount of short-time working? Would he not recognise that, in these circumstances, to remove the quotas would be absolute murder of the Lancashire textile industry? Would he now say that he will not allow the quotas to end before the end of this year?

Mr. Ridley

The hon. Gentleman will know that it was the industry, supported by the previous Government, which brought in the change to 15 per cent. tariff protection rather than quotas. Despite that historical event, the Government are watching the situation very closely and will not hesitate to take action if that is thought to be necessary.

Mr. Tom Boardman

Is my hon. Friend satisfied that the 15 per cent. tariff barrier is not being covered by hidden subsidies given by some of the exporting countries?

Mr. Ridley

If there is any evidence of that fact, it will be possible, of course, to apply for an anti-dumping order. But I have no evidence at the present time.

Mr. Lamond

Has the hon. Gentleman observed that the American Government, who are apparently more concerned with their textile industry than this Government with ours, have recently made changes and introduced a quota system which will divert ever-increasing amounts of textiles from abroad to this country and will worsen the position of an already devastated industry in Lancashire?

Mr. Ridley

Some of the current trends are rather encouraging in the textile industry—[HON. MEMBERS: "Which?"] The figures for production are marginally up. We have watched the American situation very closely and, as the hon. Gentleman knows, they have now moderated their policy.

Mr. Barnett

In view of the wholly inadequate nature of that reply, I beg to give notice that I will raise the matter on the Adjournment as early as possible.

26. Mr. Meacher

asked the Secretary of State for Trade and Industry what proposals he has to increase the market for the domestic textile industry.

Mr. Ridley

The Government and Parliament have accepted terms for joining the European Economic Community which will offer opportunities to the textile, as well as other, industries.

Mr. Meacher

In view of the level of import penetration of the home market, which is running at twice the level of penetration in the E.E.C. and three times that in the United States, may I ask the hon. Gentleman to agree that the British textile industry is being subjected to unfair trading practices? Will he do something to ensure that even if we go into the E.E.C. and thus obtain, not through the actions of the Government but for other reasons, fairer trading practices, public authorities take a given higher proportion of their needs from the home market and that importers are required to obtain a given proportion of their needs from the home market before importing goods that can be obtained in Britain?

Mr. Ridley

It is very much part of the Government's thinking to negotiate terms for our joining the E.E.C.; this will result in a home market for the textile industry of between four and five times that of the United Kingdom alone, and it will probably result in some higher form of quota protection, as the hon. Gentleman suggested. On top of that, there will be great export opportunities for U.K. producers. This should be a golden opportunity for the industry.

Mr. Wilkinson

May I remind my hon. Friend that the Wool Textile Export Corporation, representatives of managements and unions of the Lancashire trade, and both sides of the Yorkshire trade, have for the last 10 years advocated British entry into the E.E.C., presumably for very good reason?

Mr. Ridley

I am grateful to my hon. Friend for pointing that out, and I am sure that they have been right to do so.

Mr. Arthur Davidson

Has the hon. Gentleman any conception of what a devastatingly disastrous time the Lancashire textile industry is going through? Is he aware that the main reason for this is the fact that the share of the home market has been getting less and less and that factories are closing daily, particularly in areas where there is no alternative employment? Will he please consider this whole matter as one of urgency?

Mr. Ridley

In the second quarter of this year the number of net new orders for textiles for the home industry, seasonally adjusted, was higher than for a very long time indeed—I think higher than ever before—so the hon. Gentleman should not paint the picture gloomier than it is.

It is clear that the Government have produced great new opportunities for the industry in Europe. We are watching whether the lowered level of protection which the Labour Government brought in for the industry will be adequate.