HC Deb 20 March 1980 vol 981 cc259-60W
Mr. John Garrett

asked the Secretary of State for Industry if he will make available the balance of the sum of money recommended for investment by the footwear industry study steering group.

Mr. David Mitchell

There has never been any Government agreement to financial assistance in excess of that already provided for under the footwear industry scheme and other existing arrangements.

Mr. John Garrett

asked the Secretary of State for Industry how many of the recommendations made by the footwear industry study report have been implemented; and if he will list in the Official Report all the major recommendations, and give reasons for acceptance or rejection.

Mr. David Mitchell

The report of the footwear industry study steering group, published in June 1977, contained 55 recommendations. These fall into three broad categories: finance, international trade matters and company performance.

In response to the financial recommendations, the footwear scheme of assistance under section 8 of the Industry Act 1972 was established in April 1978. £4.5 million was made available and it is expected that this allocation will be fully taken up.

The recommendations on international trade policy matters are subject to continuing Government review, and action when appropriate.

In January 1978 the footwear economic development committee was established and was charged with assisting the footwear manufacturing industry to im- prove its profitability and its international competitiveness.

Mr. Mellish

asked the Secretary of State for Industry if he will publish details of the take-up of the £4.5 million allocated under the footwear industry aid scheme, together with details of the estimated total investment resulting.

Mr. David Mitchell

Assistance of £3.32 million has been approved to date. It is estimated that the allocation under the scheme of £4.5 million will be fully taken up. The resulting investment by industry is expected to amount to some £28 million.

Mr. Campbell-Savours

asked the Secretary of State for Industry if he will undertake a review of the working of the footwear industry scheme, and publish the findings as soon as possible.

Mr. David Mitchell

Projects supported under the footwear scheme do not have to be completed until 31 March 1981. It would be premature, therefore, to consider any assessment of the scheme at present.

Dr. McDonald

asked the Secretary of State for Industry what effect the special social security payment remissions made available by the Italian Government for the employment of women workers has on the support for Italian footwear products imported into the United Kingdom.

Mr. David Mitchell

It is not possible to estimate with any precision the effect of the special social security payment remissions made available by the Italian Government on footwear exports to the United Kingdom, but it must reduce manufacturers' costs to some extent. The European Commission is aware of the matter and is pursuing the Italian Government under article 93(ii) of the Treaty of Rome.