COTTON INDUSTRY BILL. (Hansard, 5 July 1923)

§ THE EARL OF CLARENDON

My Lords, in moving the Second Reading of this Bill I think I should give your Lordships a brief explanation of the situation and of the proposals contained in the Bill. The Empire Cotton Growing Corporation, which is promoting this Bill, was established by Royal Charter in November, 1921, with the object of furthering the cultivation and growing of cotton within the British Empire. The administrative council of the corporation consists of representatives of various organisations concerned in the industry in this country, including the trade unions, together with other bodies interested, such as the chambers of commerce, the Governments of the Overseas Dominions where cotton growing is possible, and certain Departments of the Home Government. The funds of the Corporation are administered by a Board of twelve trustees, six of whom are Ministers of the Crown or their nominees, and six representative of those directly engaged in the cotton industry, including, again, the trade unions.

On the grant of the Charter to the Corporation His Majesty's Government made it a capital grant of £978,715, the proportion due to His Majesty's Government out of the profits made by the control of Egyptian cotton during the war. This grant was subject to certain conditions, the chief of which was that those engaged in the cotton industry should make a substantial contribution towards the funds of the Corporation. Spinners owning ninety-one per cent. of the spindles in this country have agreed to pay a sum of sixpence for every 500 lbs. of cotton consumed by them, on the assumption that it will be paid by 830 all others engaged in the industry. It is estimated that in normal times these contributions will produce a total sum of not less than £75,000 per annum. The Liverpool and Manchester Cotton Associations are willing to undertake the collection of these contributions, but they have no power to enforce them. So long as the contributions are not enforceable it is obvious that a certain number of spinners will refuse to contribute at all, and this will naturally affect the willingness of others to do so, for they will regard it as unfair that they should contribute to the funds of the Corporation while others who do not will equally benefit from the work of the Corporation. The proposal, therefore, contained in the Bill is that the contribution should be made compulsory by legislation. This has been agreed to and approved by a large majority of the owners of spindles. It is supported by the Spinners' and Manufacturers' Associations and also by the trade unions engaged in the industry.

The extension of cotton growing within the Empire is a matter of urgent interest. The United Kingdom is at present dependent for the cotton which is necessary for the weaving of the finer kinds of cotton goods upon Egypt and upon the United States for the bulk of its requirements. The Egyptian crop has declined, and whatever recovery there may be in the next few years it is certain that the United Kingdom will not be able to draw to anything like the same extent on the United States in the future as it has done in the past. Further, the work of the Corporation will be a most practical step towards the development of the economic resources of the Empire, especially of our African possessions.

There is one clause in the Bill which does not deal with the question of contributions, and that is Clause 4, which seeks to repeal the Cotton Statistics Act, 1868. This Act requires forwarders of cotton, namely, railway companies or canal owners, to furnish monthly returns to the Board of Trade of the cotton forwarded or received by them. These returns have now entirely lost their value in view of the fact that the information is contained in the monthly trade accounts and cotton trade circulars. It is therefore desired by this clause to repeal that Act, and th[...] will avoid a lot of unnecessary expense 831 and labour, not only to the Board of Trade but also to the forwarders themselves. This is a brief survey of the situation and of the proposals in the Bill. I may add that the Bill passed through the House of Commons with only formal Amendments and without a Division at any stage.