§ Mr. Hoyleasked the Secretary of State for Industry, under the European producers' agreement on synthetic fibres, what reduction in capacity, and over what time scale, has been agreed by companies in Italy and in other countries parties to the agreement; what products will be cut back as a result; if he will estimate the effect on employment in the European Community and the United Kingdom; whether inter-company trade will be regulated; whether Italian producers have been guaranteed a share of market growth; and how the agreement will be monitored.
§ Mr. MacGregor[pursuant to his reply, 25 January 1983, c. 379]: The agreement signed by the 10 major European Community producers of synthetic fibres stipulates a reduction in capacity by mid-1986 of approximately 480,000 tonnes from the level existing in 1979–80.
The products covered by the agreement are nylon staple fibre, textile and carpet yarns; polyester staple fibre and textile yarn; and acrylic staple fibre.
The agreement itself should not directly affect employment in the United Kingdom as closures already effected by the United Kingdom signatories since 1979–80 fulfil their obligations under it. However, this does not preclude the possibility of future closures as a result of commercial pressures that are external to the agreement. I am unable to estimate the effects on employment in the other European Community countries.
The agreement relates solely to capacity reductions. It does not regulate inter-company trade and no producers have been guaranteed a share of market growth. The industry will monitor capacity through an independent agency.