HC Deb 06 April 1981 vol 2 cc671-2
6. Mr. Woolmer

asked the Secretary of State for Industry what has been the percentage change in the level of production over the latest available 12-month period in the textile and clothing industry; and if he will make a statement.

Mr. MacGregor

Production in the textiles and clothing industry, as measured by the seasonally adjusted index of production, was 17 per cent. lower in the 12 months from February 1980 to January 1981 than in the previous 12 months.

This fall is part of the general decline in manufacturing output due to a number of factors, including the world recession, and substantial destocking by producers and retailers. We shall continue our efforts to help the industry within the framework of our international obligations and broad economic policies.

Mr. Woolmer

Is the Minister aware that the disastrous decline in those industries is reflected in a 116 per cent. increase in unemployment in West Yorkshire and a 170 per cent. increase in unemployment in the heavy woollen district, which includes Batley? In view of the Financial Times survey, to which his hon. Friend the Minister of State referred, which shows that two-thirds of textile firms intend to reduce employment and to reduce investment in the next 12 months, what does the Minister intend to do about the textile and clothing workers in the regions?

Mr. MacGregor

The industry already receives substantial financial aid, and, as the hon. Gentleman will know, is covered by more protection than any other manufacturing industry in the United Kingdom, with more than 400 quotas already established and other restraints on textile imports from more than 40 low-cost sources. We have stated our intention to negotiate a tough successor to the MFA, which is a major factor in the textile industry. The Government are doing a great deal to try to help the industry in difficult times.

Mr. Fletcher-Cooke

Is this not another example of statistics being rather behind events? Is it not true that the Financial Times survey, 'which we are all quoting, suggests that there is a chance—indeed, a substantial chance—that the domestic industry is picking up, has more orders and has already turned the corner?

Mr. MacGregor

I am grateful to my hon. Friend. We must all hope that that will continue.

Mr. Barry Jones

Is the Minister aware that 380 Courtaulds jobs in my constituency will disappear by July? Is he aware that in Flint town male unemployment stands at 32 per cent? Where will the new jobs come from?

Mr. MacGregor

I am aware of the problems faced by many industries that have been declining for years. The whole range of Government regional aid, which is concentrated much more than in the past on new jobs, will have its increasing effect as the upturn comes. Although I do not suggest that that will make a significant difference, in the Flint area all the measures to encourage small firms will gradually greatly aid many areas.

Mr. Maxwell-Hyslop

My hon. Friend said that the industry receives financial aid. What financial aid is received by those firms in industry which are not in assisted areas—for example" those in Tiverton?

Mr. MacGregor

They receive aid through other Government measures, as distinct from financial aid. Selective financial assistance in major schemes is available to industries in areas other than assisted areas.

Mr. John Garrett

Does the Minister agree that the collapse of the clothing and textile industries is due as much as anything else to the uniquely deep recession engineered by the Government and their economic policies? What is he saying to the managers and workers of the textile and clothing industries about when it will end? He and his colleagues have said that sooner or later things will look up, but is he aware that these industries deserve a better answer than that?

Mr. MacGregor

The hon. Gentleman knows that we have been suffering from declining industrial competitiveness for years. Dealing with that problem at a time of world recession has caused the present difficulties. The industries to which he has referred have already received financial and other assistance. They will benefit, too, from the steady course being pursued by the Government to get inflation and interest rates down, both of which have been major factors in our difficulties in the past.