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Paxhle Corucil's Refort
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Weekly Survey of the Textile Scene
F. W. TATTERSALL LTD,
FANC...
WOOLWICH HOUSE 61 MOSLEY STREET
14 A009
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MANCHESTER M2 3HU 061-236 8757
No. 1,420 HKK6/548/8
AFTER THE ANALYSIS.
April 8, 1969.
Reaction to the report on the industry's efficiency has been much as might have been expected. The big groups have declared that they have already contributed to the progress being made and will continue to do so; many of the small firms have supported Mr. Edmund Gartside in his note of dissent, objecting to the apparent assumption that they will automatically be swallowed up by their bigger brethren; the Government has avoided any direct comment, awaiting the course of negotiations with the industry on its structure and several other important aspects which are still to be ironed out.
Nor were the cries of complaint from the Commonwealth entirely unexpected. The proposition to replace quotas by tariffs had been clearly "leaked" two or three weeks before the actual publication of the report and reactions from abroad were understandable.
Such a fundamental change in policy does present the Government with a challenge but as was pointed out at the press conference to launch the report, the import surcharge had the same offect and at the time assisted the traditional Lancashire trade to a marked extent.
Comment in the editorial columns has so far been reasonably favourable although some misconceptions still arise in dealing with such an intricate subject. Not all the writers appear to appreciate that the document's findings were limited to the traditional sector of spun yarns and woven cloth, which according to some reckonings represents only about 16% of the whole industry in terms of added value.
The growth sectors, most of which are concentrating on the use of man-made fibres, continue to make very satisfactory progress but they cannot be completely divorced from the original background from which textile trading has devoloped so dramatically in the last few years. When, for example, it is suggested that the labour force of 100,000 will be cut to 55,000 in spinning and weaving, it is reason- able to assume that some at least of this manpower will be diverted to other textile processes.
Theoretical Approach.
The London press conference at which the report was introduced by Sir James Steel, chairman of the Textile Council, was a sedate affair. Forecasts that the number of firms and units in the traditional sector would be more than halved in little more than five years were discussed without the emotion which might have been generated in a venue nearer to the mill towns themselves.
Yet the underlying theoretical approach to the whole complicated question could not be disguised. Those who compiled the document had clearly based their arguments on the thesis of the probable volume of demand and then assessed how many firms and how much machinery working flat out would be required to meet this programme.