§ 2.39 p.m.
§ Lord HALEMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
The Question was as follows:
To ask Her Majesty's Government whether they have agreed to an increase in permitted imports of cotton yarn from low-cost producing countries out-side the Common Market; and why and at whose request such a decision was made.
§ Lord WINTERBOTTOMMy Lords, the answer is that under the Treaty of Accession to the European Community we have an obligation to permit free access to items on the EEC Common Liberalisation List. Cotton yarn is on that list and we should normally have been obliged to remove our restriction in 1973. In the event, we succeeded in obtaining derogations which enable us to continue to limit the total quantity of imports from those sources at progressively increasing levels, during the period ending March 1977.
§ Lord HALEMy Lords, is my noble friend aware—it was reported in headlines at the time—that this news was first published in Brussels and it was not transmitted to Britain for days? Is he aware that the textile employers and the textile trade unions knew nothing about it? Is he conscious of the disastrous effects— when mills are being closed down and when the textile industry was likely to support accession to the Common Market in the Referendum because of some obvious benefits that might accrue— of an announcement of this kind, when there is at this moment a marked expansion in the production of cotton yarn in Britain?
§ Lord WINTERBOTTOMMy Lords, although I say this with some trepidation, I think that the article in The Times is an operation in propaganda. Consultations have of course taken place. In any case, the actual derogation terms in which we manage to escape from the immediate implementation of the Common Market Regulations must have been well known, if people have been doing their job. The fact is that 30 per cent, of our yarn usage is imported. Only 8 per cent, of that 281 comes under these control areas, and it must not be felt that if a quota increases the actual imports increase with it. The controlled territories covered by quotas are India, Hong Kong and Pakistan ; and only Pakistan has used its entire quota. The other two countries have not fully taken up their quotas for importing yarn into this country.
§ Lord RHODESMy Lords, is the Minister aware that we now have more cotton yarn in the country than we are likely to use up for the next nine months? Furthermore, is he aware of the steps that the Italian Government have taken to keep it out?
§ Lord WINTERBOTTOMMy Lords, I realise that there is a surplus of cotton yarn. I am not aware of the Italian Government's arrangements, but I will study them, knowing the noble Lord's expertise in this area.
§ Lord HARMAR-NICHOLLSMy Lords, is the noble Lord aware that, while he said that people in charge of various sections in the industry ought to have known about this matter prior to its being reported in The Times, the noble Lord, Lord Hale, says that, in fact, they did not know about it? Is the noble Lord satisfied that the services offered by the Government to keep important industries informed of these matters are efficient?
§ Lord WINTERBOTTOMMy Lords, I am satisfied that the service is efficient ; but, as the noble Lord must know, one may speak but unless other people listen one speaks in vain.
§ Lord HOUGHTON of SOWERBYMy Lords, is my noble friend aware that under the multifibre agreement of GATT, of which this country is a partner, there are provisions for restriction country by country of imports which may disrupt domestic production? Can he say against which countries we have so far raised the question of restrictions? May I ask him also whether it is a fact that the European Economic Community has agreed to increase its import of cotton textiles from developing countries, and has agreed that this country's share of that increase shall be smaller than for the rest of the Community?
§ Lord WINTERBOTTOMMy Lords, that is a very wide question. I should 282 be grateful if my noble friend would put down another Question so that I might answer it specifically.
§ Lord BARNBYMy Lords, is the noble Lord aware that this question of imports of textiles of all kinds, and its pressure on employment in South Africa, Australia and this country, is at the present moment very acute? Did he notice that in Australia yesterday, in spite of assurances that there would be no Government action, a complete U-turn was made and stringent quotas have been applied? Can he give any encouragement to the hope that this question, affecting employment so severely in this country, is receiving the active attention of the Government?
§ Lord WINTERBOTTOMYes, my Lords.
§ Baroness SUMMERSKILLMy Lords, may I ask my noble friend whether it is not a fact that the low cost of cotton yarn in Pakistan, India and Hong Kong is due to gross exploitation of women's labour?
§ Lord WINTERBOTTOMYes, my Lords. I do not think they have reached the stage of development we have in this country.
§ Baroness SUMMERSKILLMy Lords, may I ask my noble friend what is the wage paid to workers in cotton yarn in these countries?
§ Lord WINTERBOTTOMMy Lords, will my noble friend put down a Question on that point?
§ Lord HALEMy Lords, is my noble friend aware of the fact that at this moment the bulk of these imports is likely to be coming from what noble Lords opposite were a couple of years ago calling our "oldest ally", where there appears to be an unsettled position? Will he accept my grateful thanks for his comments about The Times, with which I am in entire agreement? Will he say to the helpful Lord opposite that I do not think I assumed the accuracy of any of the statements made by The Times, but I suggested that they were matters for comment, and asked for comment?
§ Several Noble Lords: Order!
283§ A noble Lord: And some are more equal than others!