§ 3.55 p.m.
§ THE PARLIAMENTARY SECRETARY, BOARD OF TRADE (LORD RHODES)My Lords, I beg to move that the Draft Cutlery and Stainless Steel Flatware Industry (Scientific Research Levy) (Amendment) Order, 1964, a copy of which was laid before this House on November 10, be approved. Perhaps a brief explanation would be acceptable to the House This Order, if it is approved by Parliament, will be made by the Board of Trade under the authority of the Industrial Organisation and Development Act, 940 1947. It seeks to increase the rate of levy laid down by the Cutlery and Stainless Steel Flatware Industry (Scientific Research Levy) Order, 1962, which came into operation on January 1, 1963, and superseded an earlier Order operative on January 1, 1961. These Orders imposed a levy upon the cutlery and stainless steel flatware industry to finance scientific research in the industry. This research is carried on by the Cutlery and Allied Trades Research Association and is financed partly by levy contributions from the industry and partly by a grant from the Department of Scientific and Industrial Research.
In each of the years 1963 and 1964 the grant from D.S.I.R. has been £9,000, and levy collections have yielded approximately the £14,000 necessary to attract the grant. In 1965 the grant will be £11,000 on condition that the industrial income raised by means of the levy reaches £18,000. There is no possibility of the levy collections reaching £18,000 next year without an increase in the levy rate. Increased competition at home and abroad makes it essential that the industry should be up to date and have adequate research facilities available to it. The additional resources resulting from the increased levy and the increased D.S.I.R. grant will be used mainly on research and development projects. Because labour costs account for a large proportion of the cost of manufacture of cutlery and flatware, the bulk of the increased research effort will be devoted to increasing the degree of mechanisation and to reducing the number of manufacturing operations.
The amending Order does not alter the basis on which the levy has been imposed, but increases the rate by one-third to provide the additional yield which is required. The 1962 Cutlery Order exempted from levy liability the first £3,000 of annual turnover, and the present Order does not affect that exemption. The Order has been drafted in full accord with the wishes of the trade organisation representative of manufacturers, the United Kingdom Cutlery and Silverware Manufacturers' Association, and with the support of the trade union to which persons employed in the industry belong, the Cutlery Section of the National Union of General and Municipal Workers. The industry has a very good export record. With the 941 increased level of scientific research that will be made possible by this increase in levy, it is hoped that the industry will be assisted in its efforts to meet increased competition at home and also maintain and expand the substantial level of exports it has achieved hitherto.
Moved, That the Draft Cutlery and Stainless Steel Flatware Industry (Scientific Research Levy) (Amendment) Order 1964 laid before the House on 10th November 1964, be approved.—(Lord Rhodes.)
§ On Question, Motion agreed to.