HC Deb 08 July 1987 vol 119 cc345-6
8. Mr. Tom Clarke

asked the Chancellor of the Duchy of Lancaster what assessment he has made of the future prospects for the knitwear industry.

The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Robert Atkins)

The Government recognise the importance of the knitwear industry. As in the case of textiles and clothing as a whole, there has been significant new investment and a sharp rise in productivity in recent years.

Mr. Clarke

Given the loss of over 100,000 jobs in these industries over the past five years and our deficit of over £1 billion with our EEC competitors, despite us having one of the lowest unit labour costs within the EEC, why is investment inadequate, why are there so many redundancies, and why is Mackinnons in my constituency the subject of closure?

Mr. Atkins

The hon. Gentleman will know that the action that the Government are taking in respect of Mackinnons is a matter for my right hon. and learned Friend the Secretary of State for Scotland. I understand that the Scottish Industry Department has offered substantial financial support to parties who are interested in acquiring the company. The hon. Gentleman has received a reply from my hon. Friend the Member for Galloway and Upper Nithsdale (Mr. Lang), the Minister of State, Scottish Office, who has dealt with the matter at some length.

Sir John Farr

May I first congratulate my hon. Friend on his elevation, which has given a great deal of pleasure to many of my right hon. and hon. Friends and myself and, indeed, to Members on both sides of the House? We hope that he will remain on the Government Front Bench for many years to come.

I ask my hon. Friend to recognise the splendid achievement of the textile and clothing industries, and especially the textile sector, in increasing exports by 14 per cent. in the previous quarter. It should be recognised that the clothing industry increased its exports by 21 per cent. Is he able to assure the House that the United States Government are aware of the danger of the Bill that is now passing through Congress, which could be extremely damaging to the industry?

Mr. Atkins

I am extremely grateful to my hon. Friend for his kind remarks. We shall see whether they are deserved as I continue to stand at the Government Dispatch Box. The Government are taking the American Bill extremely seriously and view it as a dangerous threat to United Kingdom exports and businesses. When my right hon. Friend the former Secretary of State for Trade and Industry went to the United States recently he made it clear to the United States Administration and Members of Congress how strongly we felt about the measure. We shall continue to take a firm view of it.

Ms. Clare Short

Is the Minister aware that the textile industry in Britain has been in long-term decline and has suffered from a wage-cutting strategy, a cut in investment and a cut in training, and that if we do not intervene it will decline further and die? Intervention is required to get investment, decent training and decent wage levels. Do the Government have any plans to make such an intervention?

Mr. Atkins

The hon. Lady's point has been answered this afternoon and on previous occasions. The industry is successful, having undergone some difficult times, as I well know from my own part of the world. Although we obviously take a continuing interest in matters affecting the textile industry, the hon. Lady's points will need to be considered.