HC Deb 27 March 1985 vol 76 cc470-2
13. Mr. Latham

asked the Secretary of State for Trade and Industry what recent representations he has received from organisations representing the textile and knitwear industry regarding the need for an extension of the multi-fibre arrangement; and what response he has given.

Mr. Channon

I have received representations from the TUC, the British Textile Confederation, the British Clothing Industry Association and the Knitting Industries' Federation and from individual companies in those industries. I have told these bodies that their views, and those of other interested parties, will be taken into account in the formulation of the Government's policy.

Mr. Latham

Is my right hon. Friend aware that substantial concern persists in the knitwear and textile industries, which are major employers of labour, that Ministers are taking an ambivalent attitude towards the extension of the MFA? Will he give an assurance that he understands the disastrous effect that there would be on employment if the arrangement were not effectively renewed as soon as possible?

Mr. Channon

I take note of my hon. Friend's comment. The Government are consulting all concerned and in due course will make a statement. The MFA does not completely run out until the end of next year, so there is still some time.

Mr. Madden

Does the Minister not understand that there will be massive job losses if the MFA is abandoned or radically liberalised? Does he not understand also that in west Yorkshire one in three manufacturing jobs are in the textile and clothing industry? As the so-called Budget for jobs has done nothing for areas such as mine, will he give a firm, clear and unequivocal assurance that the Government are committed to renewal of the MFA, and a tough MFA at that?

Mr. Channon

I looked recently at the figures for the Yorkshire wool industry, and I was glad to see that the wool textile sector increased its exports by 23 per cent. last year. All of us want to see a flourishing clothing and textile industry. The Government are consulting, and the figures for unemployment which the hon. Gentleman cites are by no means agreed. This is a matter of great importance, about which the Government are entitled to think clearly.

Mr. Nicholas Winterton

Does my right hon. Friend agree that the textile, clothing and knitwear industries are the country's fourth largest employer, that unanimously the representatives of those industries have demanded a renewal of the multi-fibre arrangement and that the Silberston report, which comes to some very ridiculous conclusions, provides no substantive evidence for those conclusions? Unless the Government renew the MFA, not only in 1986 but subsequently, unemployment in this country will increase and an important manufacturing base will be undermined.

Mr. Channon

I note my hon. Friend's views and I understand the feelings expressed by my hon. Friends and other hon. Members. Naturally, it is a factor which will be taken into account.

Mr. Winterton

That was a pathetic reply.

Mr. Sheerman

Is the Minister aware of the urgent need to give confidence to this major employer and exporter to invest in new plant, material and machinery? Confidence is needed now. Post-Silberston there is a lack of confidence in the industry. The Minister must act quickly on the MFA to restore confidence so that investment can take place.

Mr. Channon

Of course the Government will have to act with reasonable speed about the matter. On the other hand, I have already pointed out that the MFA does not expire until the end of next year. On an issue of very great importance it is perfectly reasonable for the Government to consult all the interested parties. I am to see some of them tomorrow. I think it is a bit rough to be expected to announce a decision today.

Mr. Brandon-Bravo

I understand the generality of our stance against protectionism—

Mr. Winterton

It is not protectionism.

Mr. Brandon-Bravo

My hon. Friend should ask his own questions.

Mr. Winterton

I do, I do.

Mr. Speaker

Order. The hon. Member for Macclesfield (Mr. Winterton) must contain himself.

Mr. Brandon-Bravo

I am grateful to you, Mr. Speaker.

I am sure my right hon. Friend understands that much of the employment in the textile industry is female intensive in areas of high male unemployment. In that special situation, does the Minister not believe that some agreement is essential?

Mr. Winterton

Quite right.

Mr. Channon

I take my hon. Friend's question extremely seriously. He raises a very important point—[Interruption.] I am surprised that the right hon. Gentleman takes that attitude. The textile and clothing industry is a very important industry. British textile and clothing exports rose by over 15 per cent. last year to almost £2.5 billion. The Government take this question extremely seriously. All of these points will be borne in mind, and of course I note the views of the House on this matter.

Mr. Williams

As the European Community has just vetoed any extension of Government support for the textile industry, and as the Government themselves have deliberately debarred the industry from any modernisation assistance under regional development grants, will the Minister take this opportunity to give the industry a categorical assurance that the Government will fight for a strong MFA?

Mr. Channon

I have now answered this question about nine times. I have already said that the Government are consulting all the interested parties and will announce their conclusion at an early date. I take note of all the points of view expressed by the House. I think that some of the right hon. Gentleman's preamble was misleading, but I certainly take note of what the House thinks.