HC Deb 13 April 1981 vol 3 cc14-5
18. Mr. Allen McKay

asked the Secretary of State for Trade if he will introduce legislation to prevent the export of secondhand machinery and other plant from factories in the United Kingdom on occasions where the machinery has been used at a factory which has been closed because the owners have decided to operate that machinery in a low-labour cost country such as South Africa.

Mr. Parkinson

Such legislation would not be consistent with our obligations under the Treaty of Rome and the General Agreement on Tariffs and Trade.

Mr. McKay

It would not be consistent with the Treaty of Rome, but does the Minister think that it would discourage redundancies and encourage the earlier reopening of factories? Is he aware that in my constituency a firm that was making hundreds of men redundant—David Brown—advertised for workmen in South Africa, thereby creating redundancies in my area and employment in South Africa, unlike a neighbouring firm, Naylor Brothers, which is investing in expansion?

Mr. Parkinson

Successive Governments have refused to accept that there is any profit for the country in building up laws to restrict the export of secondhand machinery. I do not believe that this country's future prosperity will depend upon restrictions on the export of old machines.

Mr. John Smith

Is the Minister aware that recent figures produced under the requirements of the EEC code of conduct show that a number of British companies operating in South Africa are still paying wages well below the level recommended by that code, and that this number is a blot on our tradition and reputation as a nation? What will the Government do about those companies that are paying African workers starvation wages?

Mr. Parkinson

The right hon. Gentleman's question has nothing to do with the question on the Order Paper, but I hope that he will give credit to those British companies, overwhelmingly in the majority, that meet the standards, and that he will not harp on the tiny minority that do not.

Mr. Smith

Why not?

Mr. Cryer

Will the Minister enlighten the House on the Government's policy on the export of machinery where its purchase has been grant-aided by the British taxpayer? As he well knows, the machinery has to be used for four years only, and it is not then old, even in today's modern technological society. Machinery whose purchase has to a large degree been contributed to by the British taxpayer is then exported to provide a competitive product from, say, South Africa. Should not the hon. Gentleman be doing something about that?

Mr. Parkinson

There are arrangements to reclaim grants if the machinery has not been used for a reasonable period. I believe that those arrangements are satisfactory.

Forward to