HC Deb 27 November 1978 vol 959 cc6-8
6. Mr. Madden

asked the Secretary of State for Trade if he is satisfied with the operation of the multi-fibre arrangement.

11. Mr. James Lamond

asked the Secretary of State for Trade if he is satisfied that all the countries involved are observing the multi-fibre arrangement.

Mr. John Smith

There were bound to be some problems in the first year of operation of new and complicated arrangements, but I am satisfied that they are now operating broadly as was intended.

Mr. Madden

May I also welcome my right hon. Friend's new appointment and trust that he will show sympathy towards the problems of the textile industry? In this connection, is my right hon. Friend concerned about the present and potential imports of blankets and other textile products from Eastern Europe, Spain, Portugal and Greece? As there are to be separate quotas for the first time next year for blankets, will my right hon. Friend agree to meet a deputation from the British Blanket Manufacturers' Association, which is most concerned about the upsurge of imported blankets?

Mr. John Smith

I thank my hon. Friend for his good wishes, and certainly I shall pay careful attention to the needs of the British textile industry. He will appreciate that this Government have done more than any other, especially through the multi-fibre arrangement in terms of product coverage and future growth of imports, to protect the interests of our textile industry. We have noted the position about blankets and, of course, I shall be very glad to meet a delegation.

Mr. Lamond

Although I recognise what the Government have achieved in these arrangements, is not it correct that there has been a 15 per cent. increase in value terms already this year over last year? Is my right hon. Friend aware of the growing concern among all in the textile industry, many of whom were very strong supporters of the EEC, about the extension of the EEC to include countries from which further low-cost textiles will be admitted into the EEC?

Mr. John Smith

Dealing with my hon. Friend's first question about the levels of imports, he will bear in mind that some of the imports are re-exports and that some are consignments which reached the country before the 1978 quota came into operation. He will also bear in mind that the MFA took as its base the 1976 levels of imports and that there was a decline in 1977, so that some increase was bound to occur under the agreement. I must emphasise that no quotas have been reached so far as we can detect, and we police these matters very vigorously.

As for other countries at present out-with the Community, no bilateral arrangements were reached with them. But arrangements were made and, where we think these have been breached, we have pursued the breaches very vigorously. As my hon. Friend will know, safeguard action has been taken against Turkey and Malta.

Mr. Tim Smith

Has the position with regard to imports of cotton yarn and knitted shirts from Greece improved? What is the present position as regards Portugal? Have the outstanding matters been agreed? Is the right hon. Gentleman satisfied generally with the enforcement arrangements?

Mr. John Smith

I can confirm that we have reached agreements about textile imports from Greece, Spain and Portugal.

Mr. Richard Wainwright

Since thoughts are already turning to a renewal of the MFA eventually, will the right hon. Gentleman advise the EEC that our country's national interest is very well served by a restraint on imports which has skilfully avoided any retaliation against our textile exports?

Mr. John Smith

The hon. Member will know that the MFA will continue until 1982. However, the point of view which he expresses is one which the Government share completely and which we state as often as we can within the counsels of the Community.

Mr. Buchan

Is there any means whereby my right hon. Friend can use the measures in the multi-fibre arrangement to deal with the problem of the fibre involvement in the tyre industry? Is he aware that continuing imports of cheap tyres from Eastern Europe and the Far East are posing a great problem, especially to crossply tyres in areas such as my constituency and the India Tyre factory? Can anything be done to prevent it?

Mr. John Smith

My hon. Friend will appreciate that his question is slightly wider than the multi-fibre arrangement—indeed, it is outwith its scope. However, I know that my hon. Friend the Under-Secretary of State has been in touch with the tyre cord manufacturers on this matter and is pursuing the very question that my hon. Friend raised.