HC Deb 13 December 1984 vol 69 c556W
Mr. Lightbown

asked the Secretary of State for Trade and Industry when the report by Professor Silberston on the multi-fibre arrangement is to be published; and if he will make a statement.

Mr. Channon

Today. A copy of the Report has been placed in the Library of the House.

My right hon. Friend, the then Secretary of State, asked Professor Silberston in July 1983 to carry out an independent study into the effect of trade restrictions in textiles and clothing, both on the British textiles and clothing industries and on the British economy generally. I am grateful for Professor Silberston's report, which I hope will be read widely.

The report notes that temporary restrictions have for some years applied to imports of textiles and clothing from developing countries under the multi-fibre arrangements, which suspends the normal trading obligations of the GATT. The report indicates that:

  1. (i) these restrictions raise the retail price of clothing by perhaps 5% (more for lower-cost clothing) at a total cost to consumers of about £450m per annum; they also raise the cost of materials used by British clothing manufacturers;
  2. (ii) the benefits of these higher prices accrue in part to British textile and clothing manufacturers, though the main benefit is to foreign suppliers;
  3. (iii) the import restrictions make employment in the British textile and clothing industries somewhat higher than it would be without them. However, their macro-economic effects tend to depress employment elsewhere in the British economy. Overall, the restrictions tend to leave employment in the economy lower than it would be without them;
  4. (iv) the cost-per-job of the employment safeguarded in the textiles and clothing industries (leaving aside jobs lost in other industries) exceeds average earnings in those industries;
  5. (v) the British textiles and clothing industries face formidable barriers to their own exports in most parts of the world.

This is an important report about an important industry, which employs 2 per cent. of the nation's work force.

The Government would welcome the views of interested parties on Professor Silberston's report. It would be helpful to have comments as soon as possible before the Government takes a position on the future trade regime for textiles and clothing, prior to negotiations in the EC and the GATT.