POLYESTER IMPORTS FROM JAPAN (Hansard, 4 May 1972)

§ LORD POPPLEWELL
My Lords, on behalf of my noble friend Lord Rhodes I desire to ask the Questions standing in his name on the Order Paper.

§ THE MINISTER WITHOUT PORTFOLIO (LORD DRUMALBYN)
My Lords, with your Lordships' permission I shall answer together the two Questions on imports of polyester filament yarns from Japan. Representations about these imports have been made to Her Majesty's Government by the principal United Kingdom producers and are currently being urgently considered. Among the factors which my right honourable friend will necessarily be taking into account are the employment outlook and the extent to which these imports may have displaced home production.

§ LORD POPPLEWELL
My Lords, in view of the fact that the two Questions have been answered together I hope your Lordships will agree to my supplementary question being in three parts. When does the noble Lord expect a decision to be arrived at in the discussions that are now taking place with the Department of Trade and Industry to effectively deal with the dumping by Japan of this product in this country? Is he aware that this dumping process has had an important bearing on the increase by Japan of their share of this trade to the United Kingdom from 2 per cent. in 1970 to 20 per cent. in January of this year? What steps are the Government taking to deal with the dumping that took place when America, by their 10 per cent. surcharge and by their quota system, refused to allow Japanese goods to be offloaded in America? The goods were sent to Cherbourg and the customs officers refused to allow them to be unloaded there. They were then dumped in this country. Is the noble Lord further aware that what is now taking place is responsible for the loss of at least 1,000 jobs which will not be available in the future in this country, chiefly in Northern Ireland?

§ LORD DRUMALBYN
My Lords, in reply to the noble Lord's first supplementary question, as to when the decision is likely to be taken, I said that this matter was being urgently considered, 848 and it will certainly be within the next few days. On the second point, as to how far imports from Japan have increased, I think that the figures the noble Lord gave were correct. He asked what steps the Government were taking to deal with the imports. This is all part of the decision that has to be taken and I do not think he will expect me to give an answer to-day. The same applies to the question of a thousand jobs. I am not aware that a thousand jobs have been lost at the present time.

§ LORD BALFOUR OF INCHRYE
My Lords, arising out of the Minister's reply, is this not a case where Her Majesty's Government might already have either introduced anti-dumping duties or, alternatively, better still, invoked the safeguarding clauses of the 1962 Anglo-Japanese Commercial Treaty? Could not such action have been taken already, and if it has not been taken may we have an assurance that it is going to be very soon?

§ LORD DRUMALBYN
My Lords, the invoking of these clauses would of course depend on Her Majesty's Government's being satisfied that dumping has taken place within the meaning of the Act, and that is one of the matters being looked at.

THE EARL OF SELKIRK
My Lords, can the noble Lord say how much of the yarn is at present introduced duty-free? Furthermore, can he say that he is assured, according to the Act, that it is in the national interest that that percentage should in fact come into the country duty-free?

§ LORD DRUMALBYN
My Lords, all these questions are being looked at, but I am sure my noble friend realises that duty-free imports are allowed only where the imports are used for the manufacture of goods which are going to be exported, and it may be in the national interest to maintain this.

§ LORD BURNTWOOD
My Lords, while I think the House would say that my noble friend Lord Popplewell is absolutely right to put these questions on a specific industry that is causing him and other people great anxiety, may I ask whether it is not a fact that over the past few years the balance of trade between 849 Japan and the United Kingdom has been very satisfactory, in the sense that frequently the balance is in our favour? I am speaking about trade as a whole.

§ LORD DRUMALBYN
Yes, my Lords. I agree that in general it is in the interests of this country not to prevent imports, because if we did so we should lose exports.

§ VISCOUNT BOYD OF MERTON
My Lords, may I declare an interest as a director of Imperial Chemical Industries and ask my noble friend whether he is aware that, of the four firms making these yarns in the United Kingdom, one has one of its major plants in Northern Ireland and is currently paying out about £5 million a year in wages and salaries, that the other three have their only plants in Northern Ireland, and that these imports have now reached crisis dimensions?

§ LORD DRUMALBYN
My Lords, I am aware of the facts that the noble Viscount has given as to where the production takes place. But as to the question of whether these are crisis levels of imports, I hope he will allow me not to make any statement about that to-day.

§ LORD SHACKLETON
My Lords, in the light of the concern expressed in the House, I wonder whether, in the consideration of what I am sure all noble Lords agree is a difficult and complex subject, the noble Lord would consider letting the House know, by means of a Statement, what the results of that consideration are, particularly in relation to the obligations of international and our own laws in the matter? It is difficult to judge now.

§ LORD DRUMALBYN
Yes, my Lords, I shall be very glad to consider that suggestion. But I must make it clear that it must be completely without commitment. It will depend very much on the circumstances.