HC Deb 24 July 1978 vol 954 cc1131-3
9. Mr. James Lomond

asked the Secretary of State for Trade what were the United Kingdom imports of cotton yarn and knitted shirts from Greece during the first four months of 1978.

Mr. Meacher

United Kingdom imports of cotton yarn and knitted shirts from Greece in the first four months of 1978 were 1,192 tonnes and 1,768,000 pieces respectively.

Mr. Lamond

Do not those figures demonstrate that the informal agreements arrived at under the Multi-Fibre Arrangement have been thwarted by Greece in particular? Is not this another example of the fact that we should be much more able to protect our own industry if we were not bound up with the bureaucrats in Brussels?

Mr. Meacher

The EEC imposed quotas on imports of Greek knitted shirts and blouses as from 7th July at the levels that we accepted last December. But my hon. Friend is quite correct in indicating that there has been a slippage, in that the quota was 0.95 million whereas imports in the first four months were 1.77 million. I think that action would have been taken sooner if the Commission on this occasion had not omitted the safeguard clause in the EEC-Greece agreement.

Mr. Fletcher-Cooke

Have the Greek authorities connived at this extraordinary over-fulfilment of a year's quota in four months? If so, what action do the EEC or the Government propose to take against the authorities themselves?

Mr. Meacher

I have no evidence—none at all—that there has been any lying on the part of the Greek authorities. The EEC-Greece agreement did not contain a safeguard clause. Therefore, there was the question of the legal authority under which the Commission would act in order to insist legally and mandatorily on the assurances which the Greeks had given last December. That authority has not been obtained. A quota has now been imposed, but the level of imports has been considerably higher than the quota agreed last December. But it means that in future years that quota at the agreed level will now be enforced.

Mr. Noble

Is my hon. Friend satisfied with the lack of any formal arrangements with many of the Mediterranean countries? Will not the Government press to ensure that these arrangements are formalised next year? Is my hon. Friend also satisfied with the surveillance arrangements for the MFA in general operating in the rest of Europe?

Mr. Meacher

I am satisfied that the surveillance arrangements are effective. Where they appear not to be effective and where additional imports have come in over and above the quota level, this is largely for two reasons—first, that additional imports may have been licensed where they are only for re-export, and, secondly, that a large part of some countries' consignments were shipped at the end of 1977 and therefore do not count against the 1978 quota, although they count in the 1978 imports.

As regards the rest of the Mediterranean suppliers, we have made it very clear to the Commission that, whatever the outcome of the negotiations still going on in Portugal, we shall only accept an arrangement which depends on firm undertakings that the December 1977 policy levels will be fully implemented in respect of those other Mediterranean suppliers.

Mr. Tim Smith

Is the Minister aware that according to the Knitting Industries Federation the Greek industry has no intention of observing the undertakings given to the EEC negotiators, so how will the Government enforce the new restrictions?

Mr. Meacher

The EEC Commission now has power to enforce those restrictions, or to enforce the level of imports as it now is. I accept that it is well above the quota level imposed last year, but it will be enforced on that basis. We expect further action in respect of other textile sectors which might be breached to be taken soon, perhaps as a result of the meeting of the Council of Ministers tomorrow.

Mr. Hoyle

What representations has my hon. Friend received from the textile industry about the MFA? There is great concern on both sides of industry about the way in which the Commission is handling it, particularly in relation to Portugal.

Mr. Meacher

The representations we have had from industry are that the renegotiated MFA is a very satisfactory arrangement, provided it can be enforced. It is true that there has been slippage in respect of Mediterranean suppliers and that the arrangements with Portugal have still not been finalised. But we have made very clear to the Commission what our position is over Portugal, and we do not intend to shift from that.