Textile Industry (Hansard, 18 April 1983)

§ 1. Mr. Woolmer
asked the Secretary of State for Industry if he has yet studied the report of the British Textile Confederation entitled "The United Kingdom Textile Industry: A Plan for Action", a copy of which has been sent to him; and if he will make a statement.

§ The Under-Secretary of State for Industry (Mr. John MacGregor)
Yes. My right hon. Friend met representatives of the British Textile Confederation to discuss the report on 30 March. There will be further discussion of the detailed proposals.

§ Mr. Woolmer
Is the Minister aware that since his Government came into office the textile and clothing industries have lost over 260,000 jobs, and that the Governments of Spain, Italy, Belgium, France, Sweden and Canada have all felt it necessary to introduce vigorous Government schemes to help these industries? When will his Government stop sitting on their hands while these industries decline and do something to provide them with a more secure future?

§ Mr. MacGregor
I am aware of the difficulties that the textile industry has, for a wide variety of reasons, endured. 2 Of the four main recommendations in the report, the Government are taking vigorous action on three. As to sectoral aid, the Government remain concerned about the level of state aid for textiles elsewhere in the European Community. We have made it clear to the Commission that the aid must not be allowed further to undermine the position of the United Kingdom industry. The hon. Gentleman will know that the Commission is now taking vigorous steps to ensure that the European aid schemes remain within the guidelines and at the moment is putting one of the French schemes before the European Court.

§ Mr. Trippier
Has my hon. Friend seen the report in this morning's Financial Times about the brighter future that is forecast for the textile industry, in which Mr. C. Russell Smith, president of the British Textile Confederation, is reported as saying that there are signs of hope and that the industry's fighting spirit remains undiminished? Is this not the cheer that my constituents wish to hear, rather than the doom-laden prophecies of the official Opposition?

§ Mr. MacGregor
I have seen not only the press report but the full statement by the president in which he makes those comments, and adds that profitability has improved and substantial productivity advances have been made. We must continue to build on those.

§ Mr. Cryer
Has the Minister considered the possibility of a sectoral aid scheme for the textile industry within the EC guidelines, or is he doing nothing and allowing the industry to be steadily eroded away, as the Government have done in the past three years? Does the Minister recognise that the industry has a good record on productivity, innovation arid low wages, although under this Government jobs have continued steadily to drift away?

§ Mr. MacGregor
It is important to bear in mind that, in the last year for which figures are available, about £58 million of Government aid went, through various schemes, to the textile industry. However, an ever-increasing spiral of competitive subsidisation is in nobody's long-term interest and the Government remain 3 opposed to that. I agree that more can be done for advances in technology, and the report calls for that. I should like to see a bigger take-up by the textile industry of the various existing Government schemes to help innovation.

§ Mr. Stoddart
Is the Minister aware that in "A Plan for Action" it is envisaged that a further 150,000 jobs could be lost in the textile industry between now and 1988? As the main competition in fibres and textiles comes from the EC, and as France is giving £180 million of aid, Belgium £55 million and Italy £1,500 million over seven years, does not the Minister think that our industry needs much better help than the Government have been prepared to give?

§ Mr. MacGregor
It is important to bear in mind that Government aid comes from different directions. I have already given the figures for Government aid. This is an important report — the president had called it far-reaching. Some of its major points about the role of the Government concern actions that we are carrying through in recognition of our loss of competitiveness against other EC countries resulting from the long period of high inflation and high exchange rates. Thank goodness that we now have inflation levels down and that the present level of the exchange rate for the pound will offer much greater prospects for both exports and for competition against imports. We are now discussing other aspects of the report with the industry.