§ 2.36 p.m.
§ LORD BARNBYMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask His Majesty's Government, in view of the encouragement being given by members of the Government for increased imports into this country of products manufactured in Continental countries, including France, whether, should such imports result in developing appreciable unemployment in any industry in this country to the extent for instance of that presently reported in the U.S.A. and Canada in the wool textile industry (reaching as high as 40 per cent. in the former), they can foreshadow any steps to protect workers from such hazard of unemployment.]
§ LORD LUCAS of CHILWORTHMy Lords, I assume that the noble Lord is referring to the relaxations in import restrictions announced by the President of the Board of Trade in the House of Commons on September 29. Import licensing restrictions are designed to safe- 2 guard our balance of payments and not as such to give protection to our home industries; the proper instrument for the latter purpose is the Customs tariff. The Government see no reason why appreciable unemployment should develop in the United Kingdom as a result of the recent measures for the liberalisation of European trade. If relaxations of import restrictions by other member countries of the Organisation of European Economic Co-operation proceed on a commensurate scale, United Kingdom industry should, on balance, stand to benefit both through the removal of other countries' import restrictions and through the incentive, which competition in the home market should provide, to increase efficiency and lower costs and prices. This will in turn assist industry in its vital task of improving its competitive position in export markets. The position will, of course, be kept trader review.
§ LORD BARNBYMy Lords, arising out of that reply, in which the noble Lord emphasised that tariffs would be the proper medium for protection against the possibility of unemployment, would he bear in mind that the question indicated that already, in spite of tariffs and the urge for additional exports, unemployment exists in those industries in Canada as well as in the United States, and it is because of the danger of unemployment here that the question is raised? I would like the noble Lord to remind his colleagues at the Board of Trade that on a previous occasion when this country was under pressure by reason of similar imports from Europe we had to resort to 3 the Safeguarding of Industries Act and emergency measures in order to avoid high unemployment developing.
§ LORD LUCAS OF CHILWORTHI can assure the noble Lord that it is His Majesty's Government's intention to safeguard the employment of British workers against low priced imports where those low prices are the result of sweated labour. However, I will draw the attention of my right honourable friend to the noble Lord's observations.
LORD HAWKEIf, as the noble Lord said in his answer, import restrictions are designed to safeguard our balance of payments, might I ask why His Majesty's Government allowed Italy to build up large sterling balances this year at the expense of our fruit growers?
§ LORD LUCAS OF CHILWORTHI hardly think that arises out of the noble Lord's original Question or my reply.