Clothing (Hansard, 15 November 1976)

Mr. Alan Williams

Following is a summary of the recommendations to Government together with an outline of the action so far. The sector working party's continuing work on market objectives should lead to further requirements and responses, particularly with regard to the Recommendations on exports.Recommendation.—Government policies should ensure that no sudden increase in consumers' expenditure occurs and the banks should be encouraged to give priority to lending for working capital and investment as against consumer expenditure. Action.—Guidance has already been given to the banks to give priority to the needs of industry. More generally, the Government have recognised the need for a balanced expansion of the economy. Recommendation.—The Government should consider what further action can be taken to assist exporters, by, e.g., direct assistance for expenditure on design and marketing, or higher rates of grant under the Industry Act scheme for exporting companies. Action.—The clothing scheme is under review. It already provides some assistance for marketing. A detailed reply to this recommendation is being prepared by the Department of Trade, but the Government's initial view is that industry cannot expect to be relieved of the normal and necessary costs of doing business abroad. Recommendation.—The Multi-Fibre Arrangement should be renegotiated to make it more effective. Burden sharing between the developed nations to be examined. Action.—The Department is engaged on a policy review of the MFA in consultation with the industry and unions. Recommendation.—The period of application for Temporary Employment Subsidy may need to be extended. Companies for whom payment of the TES will be discontinued before the end of the period for applications should be entitled to apply for three-monthly extensions of the subsidy. Action.—The Government introduced the Temporary Employment Subsidy in August 1975 as a purely temporary measure. The period of subsidy for individual firms has already been extended from six to 12 months and no further extension is contemplated. The Government are now considering whether there is a need to extend the scheme in some form beyond the end of 1976. Recommendation.—Government should urgently consider the recommendations for modifications to the Industry Act Scheme the EDC made at its 30th June meeting. Action.—The Department has had further discussions with the EDC about its recommendation and is considering whether changes could be introduced. 434W Recommendation.—Anti-dumping procedures should be speeded up and more rigorously applied, e.g., by placing the onus of proof on the importer, by imposing provisional duty orders, by setting a time limit on investigations or by simplifying criteria for establishing disruption. Action.—The Department is providing information for the SWP on the operation of United Kingdom anti-dumping procedures and on the transfer of responsibility for antidumping to the EEC Commission in 1977. The Government have reviewed their own procedures to ensure that action is taken as quickly as possible, and the Department of Trade's anti-dumping unit has been greatly strengthened. Nevertheless, the Government depend heavily on industry to supply all the requisite information before action can be taken and provisional duty orders imposed.