HC Deb 16 February 1981 vol 999 cc11-2
12. Mr. Woolmer

asked the Secretary of State for Trade what recent assessment he has made of formal and informal trade barriers erected by other countries which are encountered by United Kingdom exporters of textiles and clothing.

Mr. Biffen

The Government keep all barriers to our textile and clothing exports constantly under review and pursue every appropriate opportunity to get them reduced.

Mr. Woolmer

Is the Secretary of State aware of the massive demonstration of textile and clothing workers in London and around Westminster today to show their grave concern at the loss of 100,000 jobs in the past 12 months? What response does he expect to give to the report of the Select Committee on Industry and Trade, which drew attention to the huge barriers that our wool textile exports face? What hopes can he give that that barrier will be reduced?

Mr. Biffen

I am aware of the demonstration. The great anxiety in the wool textile trade is recognised in all parts of the House. The recommendations of the Select Committee covered many matters outside the responsibility of the Department of Trade. In due course, I shall publish our response to the recommendations.

Mr. Anthony Grant

Will my right hon. Friend confirm that the Government's policy has been to operate under the multi-fibre arrangement negotiated by the previous Government and to improve on it and rectify its defects? Is it therefore not the height of cynicism for the Opposition to complain about that policy?

Mr. Biffen

That is a trenchant and valid comment. The MFA is bound to be the framework within which we operate, to reconcile not only the interests of textile producers but also those of United Kingdom customers and our wider trade relationships. The agreement is for renegotiation, and we shall take into account all the representations that are likely to be made.

Mr. Barry Jones

Is the right hon. Gentleman aware that partly because of the barriers a £12 million investment project by Courtaulds, in my constituency has been shelved? Is he also aware that among the many textile workers from my constituency here today there is bitterness about the bad effects on the textile industry, and man-made fibres in particular, of the over-valued pound and high interest rates.

Mr. Biffen

I am politically a sufficiently near neighbour of the hon. Gentleman to appreciate the serious unemployment problems that he has to contend with. I hope that he will take some comfort from the fact that the United States Adminstration are deregulating their oil prices. I hope that that move will be extended to natural gas to bring about a more equitable relationship in the competitive nature of the respective economies.

Sir Charles Fletcher-Cooke

Has my right hon. Friend any up-to-date information about the response of the United States to the EEC representations about feedstock and fuel prices, since the Minister of State, Department of Industry, said that he expected it to be sent to Washington early in February?

Mr. Biffen

I understand that the negotiations are almost at the point of fruition and that, indeed, we may have information tomorrow. I shall make it my responsibility to see that my hon. and learned Friend is informed as soon as I am.

Mr. John Smith

Is the Secretary of State aware that the effect of feedstock prices has been to increase import penetration in the United Kingdom of polyester filament yarn from 7 per cent. to well over 25 per cent. and that a serious imbalance and disruption is occurring in trade relations in textiles and man-made fibres between the United States and the United Kingdom? Is he further aware that the EEC is a past master at putting such matters aside month after month, and that we have been dealt with in that manner? Will he come back to the House at an early stage with a definite report on what the EEC or the Government intend to do to stop unfair trading by the United States?

Mr. Biffen

I am well aware of the degree of penetration of the United Kingdom. I am therefore delighted that the United States Administration have deregulated oil prices. As I said, I hope that that will be followed by deregulation of natural gas prices.