THE TIMES
Crosland puts
19.
15pc tariff on Commonwealth cotton imports
By DAVID JONES
The Government yesterday completed their package ́deal for Lancashire with the announcement that a 15 per cent tariff is to be imposed on imports of cotton textiles from the Commonwealth.
Anthony Crosland, President of the Board of Trade, told the Commons that the present quotas would be extended until the end of 1971, and would then be replaced by tariffs as recommended by the Textile Council in its report earlier this
year.
He also made it clear that the Government were prepared to consider an application by the Textile Council for an increase in the depreciation allowances on textile machinery. This is likely to result in an allow-
ance of 25 per cent for machines used on a multi-shift basis.
The Textile Council's proposal that firms in the traditional textile arcas should qualify for 40 per cent development area investment grants has, however, been rejected.
"The Government have decided against this both on general grounds of regional policy ". said Mr. Crosland, "and because in present circumstances, including the position on public expendi- turc. we would not be justified in singling out this industry for financial assistance on such а scale.
The effect of the new arrange- ment on tariffs, the President said, should be to reduce imports from the developed countries of the Commonwealth: there was no reason to suppose that with the possible exception of India the developing countries generally will be able to export less to this country over ી tariff of this amount than they would under a continuation of the quota system.
The Government would treat India as a special case when the time comes to determine the level of aid to India after 1972.
Mr. Crosland made it clear that this decision would not create a precedent for further departures from Commonwealth trade policy.
The Government clearly feel that they have done all they can for the Lancashire industry; it is now up to the companies within it to set the ship in order for the next decade.
The result of yesterday's mea- sures which are certain to cause a major row in the Common- wealth and have not been fully discussed with the Governments concerned-is that Lancashire has been given a breathing space of two-and-a-half years to undertake
the additional investment neces- Sarv to enable it to compete behind a modest tariff.
It is less than a month since the Government announced a ban on mergers between the major group- ings in Lancashire and erected a ring round the industry to protect it against takeovers from over-
seas.
It was emphasized yesterday that the decision to replace quotas by tariffs is part of the Govern- ment's grand design for the indus- try--with a period of stability for the larger groups. to reorganize and integrate and for amalgama- tion to proceed apace among the smaller companies.
ม
Successive Governments have failed to come to grips with the industry's basic problems" said Mr. Crosland. and the industry itself has failed to adapt suffi- ciently to changing circum- stances."
Inquiries already made by the Board of Trade reveal that a high proportion of firms is prepared to go ahead with new investment if tariffs offering a margin of pro- tection both stable and predictable -replace the quota system.
Decision on Courtaulds
The Government have decided- against the advice of the Monopo- lies Commission to keep the pre- sent level of duty of cellulosic fibre and yarn.
Courtaulds, the sole producer in this country, has agreed to end restrictive arrange- ments with European Free Trade Association producers, said Mr. Crosland.
The company has also given assurances that it did not and would not discriminate between its own subsidiaries and other cus- tomers-except on purely commer- cial grounds.
Leading article, page 23.
23 JUL 1969
RECEIVED IN
REGITRY No.51
24 JUL 1969
HKX6/548/
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