§ Mr. Woofasked the Secretary of State for Industry what information he has received about the levels of production, employment and profitability in the British paper industry; and what representations he has received concerning the possible effects of stricter price control on profit levels and employment in the industry.
§ Mr. CryerThe industry has provided information on levels of production, employment and profitability to the Paper and Board Sector Working Party under the industrial strategy programme. It has also expressed views on the policy and arrangements on price control which it regards as desirable after the present code expires next July. The sector working party will take all this into account in its further work and reports.
§ Mr. Woofasked the Secretary of State for Industry what disadvantage the British paper and board industry manufacturing industry is suffering compared with EEC member countries because of the greater strength of European currencies.
§ Mr. CryerThe cost of imported wood pulp, on which the industry at present relies for nearly one half of its fibre requirements, has risen as the parity rate for sterling has declined against the US dollar, in which most pulp is traded internationally. The paper industries in the other member States of the EEC have been less affected, if at all, in this way. The £23 million scheme of financial assistance to encourage the United Kingdom industry to make more use of indigenous fibre will help to alleviate the problem. And the current sterling parity improves the industry's prospects for exports, including to the rest of the EEC.
§ Mr. Woofasked the Secretary of State for Industry whether he will seek discussions with Scandinavian producers about 11W their present pricing policies for paper and board, in the light of international agreements.
§ Mr. CryerI am aware of the concern of the United Kingdom paper and board industry on this matter, on which, as on previous occasions, the industry has had discussions with foreign suppliers. It is hoped that the relationships between the prices of wood pulp and of paper products imported into the United Kingdom will shortly improve. I shall keep the matter under review.
§ Mr. Woofasked the Secretary of State for Industry what representations he has received from the British paper and board industry concerning the practicability of reducing its dependence on imported wood pulp; and whether he proposes to take action accordingly.
§ Mr. CryerI have not recently had representations from the industry on this question. Following consultations with the industry, a £23 million scheme of financial assistance was launched last June, to help it to increase its capacity to use indigenous fibres and to advance recycling technology, thus reducing dependence on imported wood pulp. The Paper and Board Sector Working Party under the industrial strategy programme and the Waste Paper Recycling Working Party of the Waste Management Advisory Council are also considering these matters. But the industry and my Department are represented on these bodies.
§ Mr. Woofasked the Secretary of State for Industry what negotiations have been taking place with regard to revised quotas for paper imports; if he has taken into account the conditions of the British paper industry in assessing the quota arrangements; and if he will make a statement.
§ Mr. CryerMy hon. Friend the Under-Secretary of State for Trade laid an order before the House on 10th December in respect of quota levels for duty free entry of paper and board—and printed—products imported from EFTA in 1977. In the preceding negotiations full account was taken of the condition of the United Kingdom paper and board industry, and the representations it had made to the Government.
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§ Mr. Woofasked the Secretary of State for Industry what financial aid is given to the British paper and board industry in connection with EEC directives on water pollution by the pulp mill industry; and whether such financial aid in other member countries of the EEC will affect United Kingdom companies' competitive position.
§ Mr. CryerNone. It is not the Government's policy to offer assistance to industry exclusively towards meeting pollution control costs. Comprehensive information on government assistance to pulp mills for pollution control on offer by other member states of the EEC is not readily available. It would in any case be necessary to look at the totality of Government assistance available, to form a considered view of the effects which such assistance might have on the competitive positions of the industries concerned.
§ Mr. Woofasked the Secretary of State for Industry what duty-free quotas of paper and wood pulp and selective grant schemes by other EEC countries place the British paper industry at a disadvantage compared with its competitors in the EEC.
§ Mr. CryerDuring the period of the United Kingdom's membership of EFTA, free trade in industrial goods, including paper and board products, was established between the United Kingdom and the countries concerned. Under the terms of the free trade agreements between the EEC and the now remaining EFTA countries, this very valuable free trade relationship was preserved almost intact so far as United Kingdom exports to the EFTA countries were concerned, but some degree of protection was reintroduced against imports of paper from EFTA. As part of the arrangements, annual quotas are opened by the United Kingdom to permit the bulk of our imports of paper products from the EFTA countries to continue to enter free of duty. Similar arrangements are made by Denmark and Ireland. By contrast, all imports of paper products from EFTA by the original Six are subject to duty, but at reducing rates which from 1st July 1977 will be equal to those applied by the United Kingdom on imports above its quota levels. These transitional 13W arrangements will cease to operate on 31st December 1983, after which there will be free trade in paper products between the whole Community and EFTA. The arrangements I have described do not apply to imports of newsprint, for which, irrespective of source, the quota arrangements in force are the same for the United Kingdom as for the rest of the EEC. There are no quota or other restrictions on imports of wood pulp by the United Kingdom nor, so far as I know, by any country in the EEC. Comprehensive information about selective grant schemes by other countries in the EEC is not readily available, but the £23 million scheme for the United Kingdom paper and board industry announced on 15th June this year will certainly afford substantial assistance to our own industry.
§ Mr. Gryllsasked the Secretary of State for Industry if he will give details and state the objects of aid given under Section 8 of the Industry Act 1972, to firms in the paper and board industry; and if he will publish details of the amount of money which has been committed and the amount which has been paid to 14th December 1976.
Mr. Alan WilliamsThe paper and board industry scheme is intended to promote the use of greater quantities of indigenous fibre, especially waste paper, in paper and board manufacture, with the principal aims of benefitting the balance of payments by reducing imports of wood pulp, and at the same time improving the competitiveness of the industry. To date 14 projects—capital costs, £19.3 million; grants payable, £3.9 million—have been approved. One offer of assistance—capital cost £698,000; grants payable, £174,000—has so far been accepted. No payments have yet been made.