§ Authorisation of Price or Charge less than Normal Minimum Price or Charge.
§ 4. The amount computed in respect of cost in relation to any person under sub-paragraph (a) of the last preceding paragraph shall be computed—
- (a) by reference to the operation of his undertaking over such past period as the Cotton Industry Board think proper; and
- (b) (if the remuneration of operatives employed for the purposes of that undertaking in that period was paid at rates less than those customary in the section of the industry to which the scheme relates) on the assumption that the said remuneration was paid at the rates customary in that section of the industry.
§ LORD TEMPLEMORE moved, in paragraph 3 (b) in Part I, after "plant," to insert "and buildings." The noble Lord said: Part I of the Third Schedule prescribes the way in which the maximum limit to the normal minimum price or charge is to be determined, and Part II prescribes the method of determining the margin below the normal minimum price or charge at which the exceptionally efficient producer can sell or process his goods. In both cases the determination includes an amount for depreciation of plant. The industry have pointed out that such provision is not wide enough, as buildings as well as plant may depreciate in value and two Amendments lower down on the Paper accordingly enable an allowance to be made for both depreciation of buildings and plant, the amount to be specified in the scheme.
§
Amendment moved—
Page 61, line 29, after ("plant") insert ("and buildings").—(Lord Templemore.)
§ On Question, Amendment agreed to.
§
LORD TEMPLEMORE moved, at the end of paragraph 4 in Part I, to insert:
and shall include a sum in respect of the cost to the person carrying on the under-taking—
§ The noble Lord said: As at present drafted paragraph 3 (a) of Part I of the Third Schedule provides that in determining the limit to be set on the normal minimum prices or charges the Cotton Industry Board are required to take 406 account of the cost of manufacturing or the cost of processing the product. These words are not wide enough to include incidental expenses such as advertising, salaries of salesmen, cost of packing and so on, although clearly these have to be incurred. The first Amendment makes it clear that such costs are to be taken into consideration by the Cotton Industry Board in determining the limit to be set on the normal minimum prices or charges. There is a second Amendment which makes this clear in respect of the determination of the costs of the exceptionally efficient producer under paragraph 3 (a) of Part II of the Third Schedule. I beg to move.
§
Amendment moved—
Page 62, line 10, at end insert the said new words.—(Lord Templemore.)
§ On Question, Amendment agreed to.
§ LORD TEMPLEMOREThe next three Amendments are drafting. I beg to move.
§
Amendments moved—
Page 62, line 14, after ("whenever") insert ("they give their consent to")
Page 62, line 17, leave out ("takes effect")
Page 62, line 18, leave out ("affected") and insert ("registered under the scheme").—(Lord Templemore.)
§ On Question, Amendments agreed to.
§ LORD TEMPLEMOREI have already explained the next Amendment. I beg to move.
§
Amendment moved—
Page 62, line 42, after ("plant") insert ("and buildings").—(Lord Templemore.)
§ On Question, Amendment agreed to.
§ 4.38 p.m.
§
LORD TEMPLEMORE moved to leave out sub-paragraph (b) of paragraph 4 in Part II and insert:
(b) (if the remuneration of operatives employed for the purposes of that undertaking in that period was less than that which might reasonably be expected to be normally payable in the section of the industry to which the scheme relates, in the circumstances in which his undertaking was carried on during that period) on the assumption that the said remuneration was that which might reasonably be expected to be so payable.
§ The noble Lord said: Part II of the Third Schedule provides that a person whose costs are lower than the average of the selected group of efficient firms who have set the standard for determining the normal 407 minimum price, is to be permitted by the Cotton Industry Board to sell his goods at a price below the normal minimum price by the amount of the difference in costs. It is obviously undesirable that this advantage should apply to a person whose costs are lower merely by reason of the fact that he is paying lower wages than the standard for the section. Paragraph 4 (b), to which this Amendment relates, provides that if the remuneration of the operatives employed by a person claiming this advantage is paid at rates less than those customary in the section his costs are to be computed on the assumption that he is paying at the customary rates.
§ Paragraph 4 (b), however, in its present form may not meet all the circumstances in which this question is likely to arise. What it is desired to achieve is that the remuneration paid by the efficient should not be less than that paid by a good employer to employees working in the same section of the trade. This does not so much involve comparison of actual piece rates or weekly rates as ascertaining whether the employee is receiving not less than the wages that other employees in the same section obtain in similar circumstances for similar work. The purpose of the Amendment is to enable the Cotton Industry Board, in arriving at their decision, to review the matter from this general aspect and to have regard to all the relevant circumstances.
§
Amendment moved—
Page 63, line 7, leave out sub-paragraph (b) and insert the said new sub-paragraph.—(Lord Templemore.)
§ On Question, Amendment agreed to.
§ LORD TEMPLEMOREI have already explained the next Amendment. I beg to move.
§
Amendment moved—
Page 63, line 12, at end insert ("and shall include a sum in respect of the cost to the said person—
§ On Question, Amendment agreed to.
§ LORD TEMPLEMOREThe next five Amendments are drafting Amendments. I beg to move.
§ Amendments moved—
§ Page 63, line 18, after ("unchanged") insert ("and, if it is changed, during the appropriate period thereafter")
§
Page 63, line 26, at end insert—
("In this paragraph the expression 'the appropriate period' means, in relation to any change in the normal minimum price or charge, the period of fourteen days beginning with the day on which the change is made or, if within that period the person concerned applies under paragraph 2 of this Part of this Schedule for a determination of the special allowance for cost and depreciation in relation to the new normal minimum price or charge, the period beginning with the said day and ending with the day on which the last-mentioned determination is made.")
§ Page 63, line 43, leave out ("be varied") and insert ("have effect")
§ Page 63, line 47, leave out from ("period") to end of line 3 on page 64, and insert ("of seven days beginning with the day on which the determination is made")
§ Page 64, line 6, leave out ("taken effect") and insert ("been made").—(Lord Templemore.)
§ On Question, Amendments agreed to.
§ Third Schedule, as amended, agreed to.
§ Fourth Schedule agreed to.
§ Fifth Schedule [Maximum amounts of registration fees payable to Cotton Industry Board]:
§ LORD TEMPLEMOREBoth the Amendments to this Schedule are drafting Amendments. I beg to move.
§
Amendments moved—
Page 69, line 22, leave out ("at") and insert ("on")
Page 69, line 23, leave out ("on the said").—(Lord Templemore.)
§ On Question, Amendments agreed to.
§ Fifth Schedule, as amended, agreed to.
§ Sixth Schedule agreed to.
§ Seventh Schedule [Provisions for Exchequer assistance to boards administering redundancy schemes]:
§ LORD TEMPLEMOREThe whole of the Amendments on this Schedule are verbal and drafting. I beg to move.
§
Amendments moved—
Page 71, line 28, leave out ("employees") and insert ("persons")
Page 71, line 29, leave out from ("employment") to the end of line 30.
Page 72, line 6, leave out from ("exercisable") to ("it") in line 8.
Page 76, line 44, leave out ("employees") and insert ("persons")
Page 76, line 45, leave out ("by reason of the exercise of those powers")
409
Page 77, line 5, leave out ("with") and insert ("immediately before")
Page 77, line 6, have out ("ends") and insert ("begins").—(Lord Templemore.)
§ On Question, Amendments agreed to.
§ Seventh Schedule, as amended, agreed to.