WOOL TEXTILE INDUSTRY (SCIENTIFIC RESEARCH LEVY) (AMENDMENT) ORDER, 1952 (Hansard, 30 July 1952)

§ THE EARL OF SELKIRK
My Lords, I beg to move this Order on behalf of my noble friend Lord Swinton. This Order amends the Order of 1950 made under the Industrial Organisation Development Act, 1947. The major effect of this Order is to increase the rate of the levy on the wool industry per employment unit from 2d. to 3.4d. The levy, as I think is already known, is paid by the industry to the Wool Textile Research Council, and at present I think about three-quarters of the amount is paid to the Wool Industries Research Association. This increase has been asked for by the Wool Textile delegation, and is supported by the National Association of Unions in the textile trade. The Board of Trade have also consulted a number of other trade associations before drawing up this 444 Order. It is perhaps only fair to say that one association objected to the proposed increased levy—the Federation of British Carpet Manufacturers. But in consideration of the wishes of the other associations, and of the relatively small contribution of the carpet manufacturers, and also of the impossibility of separating this section of the industry from the rest of the woollen trade, the Department feel justified in submitting this draft Order. I would add only that the work of the Wool Industries Research Association covers a very wide field, ranging from sheep breeding to machinery development and factory efficiency. I might mention one important invention, a process for making wool unshrinkable. I beg to move.

§ LORD LUCAS OF CHILWORTH
My Lords, the noble Earl, in the few brief remarks which he made, referred to the increase of this levy upon employment units. In the explanatory memorandum which is attached to the Order it says "in respect of each operative." I think the noble Earl is right and that the explanatory memorandum is wrong. I hope that the noble Earl will be able to confirm that. I would join with the noble Earl in paying tribute to the work which this levy has made possible. I think no complaint has been made by the employees of the industry; they have agreed that their contribution shall be increased. But, be it noted, the employers' contribution is not increased, though the profit record of the wool textile industry over the last two or three years is not, I think, to be called a small one, or one which would not allow some further contribution to be made.
The point I am anxious about—and I hope the noble Earl will be able to give some information upon it—is this. I believe that I am right in saying that the reason for the increase in the unit contribution is because, owing to the falling-off of trade, and owing to unemployment, the estimated amount of this levy will fall short of expectations. Therefore, the individual incidence of the levy has to be increased. As the noble Earl has said, this is a very important matter and the 445 Wool Research Institute does a tremendous amount of work. I also understand (I am speaking from memory and the noble Earl will correct me if I am wrong) that it qualifies for a grant from the Department of Industrial and Scientific Research. Again, if my memory is correct, it runs that a grant is made of £30,000, if the amount of the levy reaches £80,000, and thereafter £100 for every £100. Will the noble Earl tell us whether on the revised scale, so far as can be intelligently anticipated, in the coming twelve months, or while this Order is in force, the total amount of the levy will reach a level where the industry can get the benefit of the grant from the Department of Scientific and Industrial Research? Those are the only questions I should like to ask the noble Earl. I hope our forebodings that the employment content of the industry will fall will be falsified. I trust that it will prosper and that the next time the noble Earl moves a revision of the Order we shall see an increased contribution coming from the employing side of the industry.

§ THE EARL OF SELKIRK
My Lords, may I thank the noble Lord, Lord Lucas of Chilworth, for the welcome which he has given to the Order. With regard to the last point which he has made, I am not able to give him the revised figure of contribution of the Department of Scientific and Industrial Research. It is of an order of magnitude which I think is seen by the scale which is running this year, which runs from £30,000 to £60,000 a year, according to the amount which is contributed by the Association itself. The revised scale will, however, involve a minimum contribution by the Association of £100,000 a year, which I think there is no doubt that they will be able to meet. The noble Lord has also raised the question of the "employment unit." In the original Order of 1950, he will see, in subsection (4) (a), that 2d. is payable in respect of each employment unit; and "employment unit" is calculated in accordance with Regulation 3. In regard to the reason for this increase there is, of course, a falling-off in the textile trade at present. From the point of view of figures the fall is not very impressive. Last year £114,000 was collected, and in the first six months of this year £48,000 has been collected. So there is reason to suppose that the fall has not been very 446 great. But that is not the only point. There is, further, the matter of costs, which are rising. It would, I think, in any case be necessary to put a larger sum at the disposal of the Research Association. I think it is also fair to say that the value of this research work is being increasingly appreciated. For that reason the industry is anxious and willing to make a further contribution.