HL Deb 07 May 1975 vol 360 cc302-4

2.41 p.m.

Lord BARNBY

My 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, with regard to the Statement by the Minister on 23rd April (Lords Hansard, col. 984) in the debate on the textile industries, they are now able to announce a decision on extended surveillance licensing.

Lord BESWICK

My Lords, we are still considering the request made by the British Textile Confederation for the extension of import surveillance arrangements to textile made-ups, knitwear and clothing.

Lord BARNBY

My Lords, while I am grateful for the information that the matter is still under consideration, may I say that that reply is disappointing, particularly because that suggestion would have lessened the difficulty of the situation. Is the noble Lord aware of the peril in which this industry finds itself? This industry contributes much to exports, and is a fine example of good industrial relations. Is the noble Lord also aware of the pressure of imports, which must increase unemployment and the likelihood of several firms closing? Further, is he aware that was made more difficult by the settlement last week of a 30 per cent. increase in rates of pay? It will interest Members of this House to know that this is the first industry to settle for equal pay for women. Can the noble Lord perhaps now suggest that the request recently pressed in both Houses of Parliament, that there should be a 20 per cent. cut across the board in all imports, is something that can be announced?

Lord BESWICK

My Lords, I am aware of the peril, and the Government are, too. Certain things have been done, as the noble Lord, Lord Barnby, will be kind enough to acknowledge, and much detail on this was given in the debate that we had a week ago. The question of the 20 per cent. cut is a complex problem. There is really no point in making a cut if the result is that through compensation and retaliatory action we are worse off. These matters have to be considered very carefully. That is, in part, the reason why no decision has been taken about the surveillance arrangements.

Lord RHODES

My Lords, would my noble friend not agree that escape clauses exist in the Treaty of Rome, in the GATT and in the Multi-Fibre Agreement, to take care of such emergencies as this?

Lord BESWICK

My Lords, we have taken advantage of some of these escape clauses. Once again I refer to the details discussed in our debate last week. I am now talking about this area. I am saying that there are very real dangers of compensation liabilities and possible retaliatory action. That is the reason why a decision has taken rather longer than we would have hoped.

Lord HALE

My Lords, has the attention of the noble Lord been drawn to the statement attributed to M. Chirac that France is now actively seeking protection for the French textile industry? Has he been in touch over this matter? Further, can the noble Lord say whether the treaty with Israel which, we are told, is to be signed in the next few days, and which makes provision for delaying the application of licences in favour of Italy, takes any account of the effects on the textile industry? Will the noble Lord bear that in mind in the current negotiations with the three countries of the Maghreb, and with Portugal, all of which we welcome as extensions of the Market and favourable to British trade generally, but which raise this question?

Lord BESWICK

My Lords, I cannot answer the question about the possible consequences of the treaty with Israel, but I will look into this and let my noble friend know, or perhaps he would prefer to put down another Question. As to the first part of his question about possible action by France, this is a possibility. Again, we have to consider whether it would be wise to trigger off a whole range of restrictions which would have the effect of reducing world trade, with particularly damaging consequences to us as an exporting nation.

Lord HALE

My Lords, would my noble friend remember that according to Le Monde this morning, the treaty with Israel is likely to be signed by 15th May? Putting down a Question is somewhat difficult in the circumstances. Would my noble friend not look into the matter and let the House know something?

Lord BESWICK

My Lords, certainly I will look into the matter straight away. I am afraid I do not have before me the implications or the consequences of that particular treaty.

Lord BARNBY

My Lords, while I am interpreting the reply of the Minister as sympathetic, may I ask him whether he realises that there has been much talk about the possibility of retaliation. If a 20 per cent. reduction were made selective, it would be difficult to administer. But if it were made comprehensive it would not be, and I repeat that it would not be a vehicle for retaliation under Article XII of the GATT.

Lord BESWICK

My Lords, that is a view which the noble Lord, Lord Barnby, expresses; it is a view which the British Textile Confederation also expresses, but it is not the view of others. There are indications, for example in Turkey at the moment, which suggest there would be very serious retaliation.

Lord BARNBY

My Lords, lastly, in view of the peril facing the industry, can it be hoped from the noble Lord's assurance that this matter has been under consideration, that a decision will be come to swiftly in order to avoid the danger?

Lord BESWICK

My Lords, I can give an undertaking that this matter is being treated with urgency.