§ Mr. Nicholas Wintertonasked the Secretary of State for Industry if he will make a statement about the Dutch company Nederland Spinnerij BV, and the effect which its activities are having on the United Kingdom textile industry.
§ Mr. David MitchellNederland Spinnerij BV was formed in 1978 from the merger of 12 spinning units, as part of a wider rationalisation of the Netherlands cotton and allied textiles industry. The Netherlands Government, who have a partial holding in the company, have provided it with financial assistance. As the assistance was, in its view, linked to the rationalisation and reduction of Netherlands productive capacity the EEC Commission, with which officials of the Department of Industry have had further contact, withdrew its initial objection of incompatibility with the State aids provisions of the EEC Treaty.
The effects of the company's activities on the United Kingdom textile industry are difficult to judge. I am informed that through another company, Nijverdal-Ten Cate, it may have obtained a modest part of some contracts placed with United Kingdom garment makers in 1977 and 1978 by the Ministry of Defence due to United Kingdom fabric suppliers being at the time unable to supply sufficient quantities to the standard required. But if my hon. Friend knows of other cases in which United Kingdom firms have lost business to the Netherlands company I should be glad to have details from him.