§ Mr. Strawasked the Prime Minister, pursuant to her reply to the hon. Member for Blackburn on 20 November, Official Report, column 31, on aid to the textile industry in the Netherlands, Belgium and France, if she will provide details of this aid and set out how it is much less than the total already provided to the British textile industry.
§ The Prime MinisterThe aid proposals by the Governments concerned are as follows:
Belgium
- 35 billion francs over five years
Netherlands
- 30 million florins over three years
France
- A new guarantee fund allowing financial institutions to make loans up to 500 million francs and easier access to Government loans.
The French and Belgian aids relate to textiles and clothing; the Netherlands to textiles only. Full details of the French proposals are not yet known. The level of aid eventually made available may be affected by any modifications to the proposals sought by the European Commission by virtue of its responsibility under the EEC Treaty to control State aid.
In the financial year 1979–80 the British textile industry received £19 million in Industry Act assistance and £7.3 million in temporary short-time working compensation. The comparative figures for the clothing and footwear sector were £7.4 million of Industry Act assistance and £1.8 million of temporary short-time working compensation. All of these sectors have, of course, benefited from assistance in earlier years. In addition, the textile and clothing industries will also have benefited from the tax savings in respect of capital allowances and stock relief received by industry and commerce.
Financial assistance to the textile, clothing and footwear industries in Northern Ireland in 1979–80 is 135W estimated as £12 million to £15 million paid under the Industries Development (Northern Ireland) Act 1966; £3.6 million paid in capital grants under section 9 of the Industrial Investment (General Assistance) (Northern Ireland) Act 1966; £112,000 paid under energy conservation schemes under section 8 of the Industry Act 1972; and £660,000 under the short-time working compensation scheme.