HC Deb 16 November 1976 vol 919 cc559-61W
Mr. Grylls

asked the Secretary of State for Industry if he will list in the Official Report a summary of the main recommendations of the report from the Sector Working Party Paper on the man-made fibres industry, listing the preliminary recommendations submitted to date, together with the action taken so far.

Mr. Alan Williams

The first report of the Sector Working Party which made a number of recommendations for action by Government, management and unions has already been placed in Library of the House. The following is a summary of the main recommendations put to Government together with an outline of the action taken so far:

Recommendation.—EEC discussions with the US about man-made fibre cloth imports and differential feedstock prices in favour of US industry should extend to man-made fibres and yarns.

Action.—The Department of Industry is considering the most appropriate means of pursuing this recommendation.

Recommendation.—(a) Anti-dumping procedures with regard to imports of fibres from Comecon countries should be speeded up; (b) anti-dumping procedures should be speeded up to the fullest extent possible to ensure the provision by the industry of reasonable prima facie evidence and action by Government to impose the appropriate duty on the particular product affected.

Action.—The Department of Trade has reviewed its procedures to ensure that within the spirit of the United Kingdom legislation and our international obligations cases are handled as quickly as possible. An antidumping duty has recently been imposed on imports to polyester tops from Romania. Further action will be considered as individual cases arise.

Recommendation.—Pressure should be brought within EEC rules, on other countries, particularly Italy, to deter the prolonged and extensive subsidisation of non-viable manmade fibre plants and the construction of further surplus capacity in Europe.

Action.—The Government intends to pursue this in discussions in the EEC.

Recommendation.—The Government should consider introducing a scheme, similar to those operating in other European countries, for state contributions to employees on short time to help firms to maintain their labour force in downturns.

Action.—Discussions are continuing on this recommendation.

Recommendation.—Recognising the present wage policy, consideration should be given by the parties to the importance of productivity increases and the problems arising from the inability to make progress in respect of productivity bargains.

Action.—This is for review in the next stage of discussion on pay policy.

Recommendation.—The Government should consider introducing a scheme, implications of the present price control legislation for the man-made fibre industry.

Action.—The new Price Code which came into operation on 1st August incorporated substantial changes designed to permit industry to raise the funds needed to finance a higher level of activity, to increase employment and to instill the confidence needed to invest for the future. In making these changes the Government took account of the weight of opinions expressed by the various sector working parties, and considers that the changes made represent a substantial move towards meeting these views.

Recommendation.—Continuing co-operation should be maintained at a high level between fibre producer/textile manufacturer/garment maker/designer/retailer and mail order distributor to establish sufficient mutual confidence and interdependence to maximise the availability and usage from United Kingdom sources of attractive and saleable products having the right style and design.

Action.—The Government will continue to support moves by the industry to implement this recommendation.

Recommendation.—There should be close and continuing co-operation between Government, management and trade unions on the formulation of the Government's policy on the renegotiation of the Multi-Fibre Arrangement.

Action.—The Government will continue to keep in close touch with the industry.