Shoes (Hansard, 30 January 1985)

§ 3. Mr. Freeman
asked the Secretary of State for Trade and Industry what progress has been made in persuading foreign countries to reduce their import tariffs on United Kingdom-manufactured shoes to levels the United Kingdom imposes through the common external tariff.

§ The Minister for Trade (Mr. Paul Channon)
Footwear, like other British exports, has benefited from reductions in duty granted by trading partners in successive GATT negotiations. But many tariffs remain far too high—and not only on shoes.

§ Mr. Freeman
I am grateful to my right hon. Friend for that answer. As he knows, footwear manufacturing is important in my constituency of Kettering. We face high and often unfair tariffs. Will my right hon. Friend take the opportunity to urge the European Commission, on the accession of Spain, to increase the common external tariff, as we are allowed to do under GATT, to the weighted average between the European Community as presently constituted and Spain, and to use that bargaining weapon with those other countries which so far have refused to reduce their tariffs?

§ Mr. Channon
I note what my hon. Friend says. I have been much impressed by the representations that he has made to me on a number of occasions on behalf of the footwear industry. The answer to my hon. Friend's specific point is that this would depend upon negotiations between the Community and the other contracting parties to GATT. I cannot say that any great increase in tariffs is in prospect.

§ Mr. Kirkwood
If the Minister is concerned about the prospects for the shoe manufacturing industry, will he, in the coming weeks, spend less time considering the important question of tariff quotas and spend more time making representations to the Chancellor of the Exchequer, who is considering imposing VAT on children's shoes?

§ Mr. Channon
I think the hon. Gentleman knows that that is a matter for my right hon. Friend, and not for me.

§ Mr. Marlow
As my right hon. Friend is well aware that the footwear industry is deeply concerned about the fact that everyone seems to be able to get into our markets, but we do not seem to be able to have the opportunity to get into other people's markets, will he tell the industry that there is nothing that he can do about the matter because he is quite powerless, and all power resides in Brussels with the European Community? The industry will then direct its complaints and attention to where something can be done about the problem.

§ Mr. Channon
My hon. Friend has slightly exaggerated the position. The British Government are perfectly capable of making representations to the Community and pressing the Community to take effective action. There are many areas where the footwear industry faces difficult exporting problems, but there are certain places — for example, South Korea — where progress is being made. We shall continue to press for progress to be made.

§ Mr. Williams
Is it not nonsense for the Minister to pretend that VAT is a matter for the Chancellor and not for him? After all, does not the Minister's Department represent the manufacturers? Will not the manufacturers be severely harmed if VAT is introduced? Does not the Minister's Department allegedly and purportedly represent the consumers? Will not the consumers be severely hurt if VAT is introduced?

§ Mr. Channon
Surely even the hon. Gentleman does not expect me to anticipate my right hon. Friend's Budget.