Textile and Clothing Imports: Quotas (Hansard, 31 July 1985)

Lord Bruce of Donington
My Lords, I beg leave to ask the Question standing in my name on the Order paper.

§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)
My Lords, under the provisions of bilateral agreements, negotiated by the European Community under the multi-fibre arrangement, 50 quotas are in force in respect of the United Kingdom on the import of textiles and clothing products from the Republic of Korea, and 13 quotas on such imports from Brazil. Under autonomous arrangements, 48 quotas apply to such imports from Taiwan. Under a new multi-fibre arrangement, the Government will seek to provide above-average improvements in access levels for developing countries whose own trade barriers to British exports are low, and for those that open up their markets to our exports.

Lord Bruce of Donington
My Lords, is the noble Lord aware that my Question relates to three specific newly-industrialised countries and not to developing countries in general? Is he aware that the tariffs imposed by the United Kingdom on these textile and clothing imports from these countries are between 13 and 15 per cent., and that the tariff's imposed against our exports to these countries are, in the case of Korea, three times as high; in the case of Taiwan, seven times as high; and in the case of Brazil, eight or nine times as high? Does he think that that shows a satisfactory state of affairs concerning our textile exporters and our textile industries generally?

§ Lord Lucas of Chilworth
My Lords, I am aware of the figures. For the benefit of noble Lords, I remind the House that these are set out in Hansard of another place of 22nd July, at col. 353. I should remind the noble Lord opposite that when he mentions the United Kingdom tariffs he really means Community tariffs, since the Community negotiates on our behalf. In regard to our own industry, I am sure he will agree that the United Kingdom textile and clothing industry has done exceptionally well. In 1984 it increased its 269 exports by over 15 per cent. over the previous year in value terms, and it has in the first quarter of 1985 increased its exports by 19 per cent. over the same period last year.

§ Viscount Massereene and Ferrard
My Lords, I understand that Brazil owes this country several thousand million pounds. It may not be as much as that, but anyway it is a lot of money. In view of that, does my noble friend agree that it seems wrong that they should have such high tariffs against the import of our textiles?

§ Lord Lucas of Chilworth
My Lords, the financial position of Brazil is broadly as my noble friend suggests, and they have in fact suspended the issue of all import licences for garments, fabrics, textiles and clothing because of that situation. Nevertheless, there is no good reason why we should act in the same discriminatory and protectionist way, which would not be to our long-term advantage.

Lord Bruce of Donington
My Lords, I take note of the fact that the noble Lord does not dispute the figures that I gave him. I should like to ask him whether he does not agree that the existing EC machinery, to which he has referred, has not yielded a satisfactory result so far as the United Kingdom is concerned? Is it not high time that Her Majesty's Government started looking after the United Kingdom?

§ Lord Lucas of Chilworth
My Lords, Her Majesty's Government look after the interests of United Kingdom manufacturers in every forum we attend. We shall be entering into negotiations over the next few months for a new MFA and we are in negotiation over a new GATT round, all considered to be in the interests of our country.

§ Baroness Seear
My Lords, may I ask the noble Lord what these countries are buying of our exports?

§ Lord Lucas of Chilworth
My Lords, of these three countries, Taiwan accepted £3.5 million worth of goods f.o.b.; Brazil, £1.6 million; and South Korea, £6.2 million.

§ Lord Cledwyn of Penrhos
My Lords, does the noble Lord agree with the current assessment of the CBI that the present value of the pound and the rate of interest will be extremely damaging to our export prospects? What are the Government going to do about that?

§ Lord Lucas of Chilworth
My Lords, the CBI survey is somewhat disappointing compared with the optimism shown in April. However, business is still experiencing growth, possibly at a somewhat slower rate. If one took the business confidence balance—that is, a balance between those who think the situation will improve and those who think it will not—the balance as on the last day of this month is zero compared to minus 3 last July twelvemonth.

§ Lord Beswick
My Lords, if one is talking about the different interpretations that one has from different people, does it not depend upon which base year they take? The noble Lord talks about an increase in the 270 export of textiles over last year. If he took an earlier base year he would find that the balance was down. If he takes exports generally and compares them with the base year of 1979 he will find that they were down.

§ Lord Lucas of Chilworth
My Lords, of course figures are presented in a variety of ways, and I suppose that if we went back the previous 15 years we would find the position extremely healthy. The truth of the matter is that the textile and clothing industry has done rather well. When one considers that there is something approaching £10.5 billion worth of products consumed in this country, over 60 per cent. of it supplied by United Kingdom companies, that to me shows a good balance in the industry.

§ Lord Beswick
My Lords, is it not still true that the textile industry itself complains of the support that it is being given by Her Majesty's Government?

§ Lord Lucas of Chilworth
No, my Lords; that is not true. The textile industry has advanced a number of ideas to us whereby assistance can be given. On the last occasion when we had a round we found that the suggestions were not in conformity with our obligations under the treaty of Europe. Further suggestions have been made to us and we are considering whether we can adopt some of them, again within our obligations to the Community. The Government will support industry, and do support industry through a wide range of methods.

§ Lord Leatherland
My Lords, does the noble Lord remember that in his original Answer he used the expression "MFA"? As I want to understand him fully, what does "MFA" mean?

§ Lord Lucas of Chilworth
My Lords, my pronunciation must have been at fault. I said, the multi-fibre arrangement, and in my original Answer I did not use the initials at all. I spoke twice of the multi-fibre arrangement.

§ Lord Leatherland
Then, my Lords, the noble Lord's memory is at fault.