§ Mr. Campbell-SavoursTo ask the Chancellor of the Duchy of Lancaster (1) whether he will meet with his European counterparts to discuss what action can be taken to deal with the level of imports of footwear from South Korea;
237W(2) whether he will introduce measures further to restrain imports of footwear from South Korea.
§ Mr. Alan ClarkThe Commission is currently carrying out a Community-wide investigation into imports of footwear from South Korea and Taiwan. We shall need to see the Commission's findings and recommendations before deciding our position. I have no plans, at this stage, to discuss this issue with my European colleagues.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Duchy of Lancaster what representations he has received from Millers Footwear of Cockermouth on the level of South Korean imports into the United Kingdom of South Korean footwear.
§ Mr. Alan ClarkI have not received any representations from the company on this subject.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Duchy of Lancaster if he will list the arrangements that exist in each member country of the European Community for controlling imports of footwear from South Korea.
§ Mr. Alan ClarkAs far as we are aware, the following restrictions exist on South Korean exports to particular member states:
- France voluntary restraint arrangements on most types of footwear
- Italy voluntary restraint arrangements on most types of footwear
- Portugal certain quantitative restrictions: the details are not known
- Spain certain quantitative restrictions: the details are not known
§ Mr. Campbell-SavoursTo ask the Chancellor of the Duchy of Lancaster whether he will meet with representatives of the British Footwear Federation to discuss the level of imports of footwear from South Korea.
§ Mr. Alan ClarkI met two MP's and representatives of the footwear industry, including the British Footwear Manufacturers' Federation, in February 1988 to discuss footwear imports from the Far East. We have had no request for a further meeting with the federation. This might be appropriate when we know the EC Commission's findings and recommendations following its current investigation of footwear imports from Taiwan and South Korea.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Duchy of Lancaster whether he will consider the introduction of selective aid to the footwear industry to alleviate the damage to employment arising from the level of imports from South Korea of footwear.
§ Mr. Alan ClarkRegional selective assistance is available for eligible investment projects in the assisted areas undertaken by firms of all sizes in the footwear and
238W
United Kingdom exports of meat and meat preparations Volume in thousand metric tonnes Value in £ million 1983 1984 1985 1986 1987 Volume Value Volume Value Volume Value Volume Value Volume Value EEC 283.7 433.9 267.2 403.0 268.5 422.9 267.4 446.0 309.7 536.3 North America 0.3 0.4 0.2 0.4 0.2 0.3 0.2 0.5 0.5 1.2 Rest of the World 57.7 61.4 79–8 87.6 64.6 74.2 83.5 75.5 68.1 88.4 other sectors. Also, my Department's enterprise initiative offers eligible firms a nationwide self-help package to improve management practice.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Duchy of Lancaster whether he would set up a footwear imports review group to evaluate the effect of South Korean imports into the United Kingdom on the British footwear industry.
§ Mr. Alan ClarkI have no plans to set up a review group for this purpose. The results of the investigation being undertaken by the EC Commission will be studied closely by my Department and the trade associations concerned.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Duchy of Lancaster what evidence he has as to the diversion of South Korean footwear from the American market to European markets due to a fall in the value of the dollar.
§ Mr. Alan ClarkTotal exports of footwear by Korea have increased by 140 per cent. in United States dollar terms since 1985. The proportion taken by the United States of America has declined from 73 per cent. to 63 per cent. while the shares taken by the EC and the rest of the world have increased. It is not clear how much of this change is due to exchange rate movements and how much to other factors.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Duchy of Lancaster what impact he expects Her Majesty's Government's strategy for the exchange rate to have on the level of footwear imports into the United Kingdom from South Korea.
§ Mr. Alan ClarkIt is not Government policy to depreciate the exchange rate to try to maintain competitiveness. Restraint of unit costs, which is in industry's own hands is the key to improved competitiveness. In fact, the South Korean won appreciated by 10 per cent. against sterling between the first and second halves of 1988.