§ 5.42 p.m.
§ Lord Lyell rose to move, That the draft order laid before the House on 29th June be approved.
§ The noble Lord said: My Lords, the international Agreement on Jute and Jute Products, a copy of which was laid before the House on 22nd March 1983, was opened for signature on 3rd January this year. It was signed on behalf of the United Kingdom on 6th June. The main element in the agreement is the establishment of an International Jute Organisation. The purpose of the draft order before your Lordships is to accord the organisation legal personality. Once this is done, we can proceed to early ratification of the agreement.
§ The organisation will propose, approve and seek finance for projects in the fields of research and development, cost reduction, market promotion, competitiveness (particularly in relation to synthetic products) and, above all, dissemination of information. The agreement does not provide for market stabilisation measures, although it does envisage that further consideration may be given to the possibility of stabilisation of prices and supplies.
§ The headquarters of the organisation is situated in Dhaka in Bangladesh. The Government of Bangladesh will conclude a headquarters agreement with the organisation to accord it such privileges and immunities as will be considered necessary for the organisation's efficient funding in Bangladesh. However, we must meet our obligations under the jute agreement by according the organisation legal personality. This means that the organisation will be able, where necessary, to conclude contracts, buy and sell property and to institute and defend legal proceedings in those states. The order does no more than that. It grants no privileges and no immunities to the organisation. I very much hope that your Lordships will approve this draft order, thereby signifying your 1020 recognition of the important work to be performed by the International Jute Organisation. I beg to move.
§ Moved, That the draft order laid before the House on 29th June be approved.—(Lord Lyell.)
§ Lord Ponsonby of ShulbredeMy Lords, may I thank the noble Lord, Lord Lyell, for explaining the purpose of this particular order. It is an order of concern to the United Kingdom, as the main trading centre for jute. I wonder whether the noble Lord can tell your Lordships what benefits to the United Kingdom will flow from the establishment of this organisation. Perhaps he can also tell your Lordships how many people in this country will benefit from the immunities and privileges conferred by this order. Your Lordships will recall that earlier today, when we were discussing quite another matter during Questions, considerable concern was expressed by a number of your Lordships from different parts of the House about the extension of immunities and privileges to various persons of one sort of another.
Finally, can the noble Lord tell your Lordships what effect, if any, the establishment of this organisation will have on our own Exchequer?
§ Lord LyellMy Lords, I am grateful to the noble Lord for his reception of my moving of this order. The noble Lord asked three specific questions. If I may take the two easier questions first—his second and third questions—the noble Lord asked how many persons would benefit from the immunities and privileges conferred by this order. I am sad to have to tell the noble Lord that this order confers no immunity or privilege upon any person. If the noble Lord's interest was excited by the various references, I am sorry to have to disappoint him. I am also able to tell the noble Lord—although possibly this might be of greater interest to him—that the effect of this order on the Exchequer will be absolutely nil; it will have no effect at all on the Exchequer.
As to the benefits of this order to the United Kingdom, I am pleased to be able to tell the noble Lord that United Kingdom merchants and manufacturers concerned with the jute industry have welcomed this agreement. Indeed, your Lordships will be interested to know that although the jute industry is only a very small industry now, the spinning of raw jute and the manufacturing of jute goods in the United Kingdom is carried out almost exclusively in the Tayside region—that is, my own home area. Above all, Dundee used to be the centre for jute. It still is a very important industry there, and the surrounding county of Angus, which is now the region of Tayside, is still very much concerned with the jute industry.
It is a slightly personal good wish when I say that I am very happy to assure the noble Lord, Lord Ponsonby of Shulbrede, and other noble Lords that the agreement to which we are giving legal personality in this country by means of this order has been very much welcomed by the jute industry. I hope that will prove to your Lordships that there are benefits to the order now before us. With that short explanation, I beg to move.
§ On Question, Motion agreed to.