§ 96. Mr. Bruce-Gardyneasked the President of the Board of Trade if he will make a statement on future arrangements governing imports of jute manufactures.
§ 97. Mr. Doigasked the President of the Board of Trade what proposals the Government now have to change the form of protection for the jute industry; and what consultations have taken place with the trade unions and employers' associations concerned in this industry.
§ Mr. DellYes. Since the end of 1964, when the commoner packaging jute goods were returned to private trade, the Board of Trade Jute Control has been the sole importer of certain types of jute goods from India and Pakistan. It then resells most of them at prices increased by a percentage mark-up. Similar goods from most other sources are subject to quota. I consider that the time has come for a new system.
In reviewing the matter I have had three objectives. First I aim to maintain employment in Dundee and the towns 131W nearby. Though the Government have given all possible assistance, through their regional policies and otherwise, to the diversification of employment, very many men and women still earn their living from making jute goods. Secondly, I aim to give British users of jute goods reasonable access to such goods at world prices, particularly where exports are concerned.
Thirdly, I have, of course, given full weight to our international obligations under the G.A.T.T., to the Commonwealth and to E.F.T.A. to liberalise our jute imports and I have done so to the maximum extent compatible with my first objective.
I have consulted both sides of industry and the trading interests concerned, I have listened carefully to representations made by our overseas suppliers and I have kept in close touch throughout with my right hon. Friend the Secretary of State for Scotland. I am now satisfied that the best way to achieve the three objectives will be to end the present system on 30th April, 1969, and to wind up the Jute Control as soon as possible thereafter. From 1st May, 1969, all imports of the goods in question will be returned to private trade. They will be subject to licence and quota limitation, but imports for re-export will be allowed outside this quota limitation except for cloth and bags used solely for packaging. There will be no mark-up but the normal tariff duty will be charged where it applies.
A Notice to Importers setting out full details of the new arrangements and the procedure to be followed by those wishing to apply for import licences will be issued at the end of the week. Priority in the allocation of import licences for jute goods for domestic consumption will be given to past importers and purchasers from the Jute Control. Any balance permitted under the quotas will be allocated in approximately equal proportions to users and to traditional traders in similar goods. The quota levels will be fixed annually and will be increased provided that such an increase is commensurate with the growth of the United Kingdom market for the types of jute goods in question and does not endanger the employment position in the Dundee area.