§ Mr. Frank R. Whiteasked the Secretary of State for Industry if he will make a statement on the effects on the British footwear and leather industry of the level of import penetration of the United Kingdom market; and what measures he proposes to take to ensure the retention of a viable British manufacturing capacity.
§ Mr. David MitchellImport penetration in the footwear sector rose from 33 per cent. in 1972 to 42 per cent. in 1978, by volume, and in the leather sector from 33 per cent. to 40 per cent. by value. Provisional figures for the first three quarters of 1979 show further increases to 47 per cent. and 52 per cent. respectively. These increases have been a significant contributory factor in the decline of output employment and profitability in these two industries.
The Government appreciate the importance to the Unied Kingdom economy of healthy and viable footwear and leather industries and will fight against unfair trading practices that disrupt the United Kingdom market and put at risk manufacturing output and employment. We are prepared to consider action in appropriate circumstances.
Under the footwear scheme of assistance £4.5 million has been allocated to help modernise and stimulate investment in the footwear industry.