HC Deb 30 April 1973 vol 855 cc784-6
15. Mr. Bishop

asked the Secretary of State for Trade and Industry if he is aware of the position of the newspaper industry as a result of the newsprint supply situation, in particular following the closure announcement of Peter Dixon and Sons; and what action he is taking to resolve the problem.

Mr. Anthony Grant

Yes, Sir. I am in touch with the industry, which is taking active steps to alleviate the situation and to assist any newspapers which may be in a critical situation over supplies.

Mr. Bishop

I thank the hon. Gentle man for that reply. Is he aware that my right hon. Friend the Member for Grimsby (Mr. Crosland) has been in touch with him on this matter, since he has a constituency interest? Is he further aware that about 40 newspapers may be affected unless urgent action is taken, and that the pegging of the price of newsprint, in spite of the rising costs for pulp, is a factor? Will he assure us that he will take an urgent initiative in this matter, so as to ensure not only that people do not lose their jobs but that the serious threat to democracy of possible closures is avoided?

Mr. Grant

As regards urgent action, the United Kingdom Newsprint Users Committee has taken certain action itself, and it is confident that this will deal with the situation in the short term. My Department has seen the firm in Grimsby which the hon. Gentleman has in mind, but it has not indicated that it needs selective assistance; indeed, it says that it would not welcome it at this stage. We are keeping a close watch on the situation generally. In the first instance, we should leave the industry to deal with the matter itself.

Mr. Jeffrey Archer

My hon. Friend will know that an American company has shown an interest in reviving the Peter Dixon firm. May we be assured that he will give every assistance to that company, to ensure that those in my constituency who are in danger of losing their jobs will be helped?

Mr. Grant

We are in touch with the firm in question, and we shall listen very carefully to anything it wishes to put to us.

Mr. Leonard

Is the hon. Gentleman aware that among the customers of Peter Dixon is a group of local newspapers with a circulation well in excess of 100,000, circulating in my constituency and in neighbouring boroughs, and that this group has to date been unable to find an alternative source of supply, so that the continuance of those newspapers beyond 30th June is now under serious threat? Will the hon. Gentleman institute an urgent inquiry into the whole question of the production, pricing and supply of newsprint?

Mr. Grant

I think that the newspapers to which the hon. Gentleman refers may well find that they are helped in their immediate position by the proposals put forward by the United Kingdom News print Users Committee.

Mr. Biffen

Does my hon. Friend realise that the newspaper industry is threatened as a result of arbitrary Government interference in the economics of the newsprint industry? What representations did he receive following the measures taken last autumn which pre vented a rise in the price of newsprint? Does my hon. Friend believe that the present state of newsprint economics justifies the price being frozen at its pre sent level, and will he make a statement to reassure people in the industry that it will not be used as a sort of political whipping boy?

Mr. Grant

I certainly give my hon. Friend that last assurance. On the specific question of Peter Dixon and Sons, my information is that the firm's difficulties have not arisen by reason of the counter-inflation measures. The general opinion, which is shared by the firm itself, is that the causes of its difficulties are, however, deep-seated.

Mr. Crosland

The Minister will be aware that 300 jobs in my constituency are at stake, and I have already made representations. Will he be rather more positive and forthcoming than he was in previous answers? Will he say not merely that he is listening with interest to any proposal which may be put to him for purchase of the company as a going concern but that he will himself actively seek out a possible buyer both to help the local employment situation and to maintain the supply of newsprint?

Mr. Grant

My Department will do everything it can to help within the frame work and the need for any proposition to be viable.