HL Deb 27 April 1954 vol 187 cc1-2

2.36 p.m.

LORD BARNBY

My Lords, I beg to ask the first Question which stands in my name on the Order Paper:

[The Question was as follows:

To ask Her Majesty's Government whether, following the recent statements by the Chancellor of the Duchy of Lancaster with regard to decontrol of the jute industry, they are yet able to announce whether this will be by application to G.A.T.T. for permission to raise duties on imports of jute materials, or by exposing the jute textile industry to the full force of competition from low wage production countries, for instance India.]

THE CHANCELLOR OF THE DUCHY OF LANCASTER (VISCOUNT WOOLTON)

My Lords, as I stated on 16th February in reply to my noble friend, public trading in imported jute goods must continue until appropriate measures to safeguard the United Kingdom industry under conditions conducive to efficiency can be worked out and introduced. The matter is being examined, but no conclusion as to the appropriate method of safeguarding the industry has yet been reached. As I previously warned the House, this may take some time. I would point out to my noble friend that no permission from G.A.T.T. would be required to impose duties on Commonwealth jute goods.

LORD BARNBY

My Lords, while thanking the noble Viscount for that reply, would it not be right to assume from it that the present policy amounts to a substantial subvention to the jute industry at the expense of the Exchequer? Secondly, is it not a fact that the Ottawa Agreement would prevent us from putting any duty on manufactured goods within the Commonwealth, whereas G.A.T.T. prevents us from putting any extra duties on imports from outside the Commonwealth?

VISCOUNT WOOLTON

My Lords, I think the answer to the first part of the noble Lord's supplementary question is in the negative. I hope that the Exchequer will not have to make any payments as a result of the present conditions.

LORD BARNBY

My Lords, perhaps I have not made myself clear. There is a cost for a subvention to industry which must be borne by someone, and presumably it would be loaded on to the consuming public.

VISCOUNT WOOLTON

My Lords, I do not deny that, but I thought the noble Lord said this cost would fall on the Exchequer.