9. I turn to the question of financial assistance to the
industry. The Textile Council proposed that firms in the
traditional textile areas should be offered the 40% rate
of investment grant which is payable in the development
areas. The Government have decided against this both on
grounds of regional policy and because in present
circumstances, including in particular the position on
public expenditure, we would not be justified in singling
out this industry for financial assistance on such a scale.
10. The Council also proposed that plant worked on a
multi-shift basis should qualify for a higher than normal
annual allowance for depreciation. The Government attach
importance to any proposal which might increase the
utilisation of new machinery, and they are prepared to
consider an application by the Textile Council for an
increase in the depreciation allowances on textile machinery
on the lines proposed.
11. In addition, the IRC, who are working closely with
the two consultants whom I have appointed and with the B.O.T.,
may be able to help with modernisation and re-equipment in
a number of cases where mergers between medium and small-
sized firms are concerned.
12. The proposal to replace the quotas by a tariff forms
an essential part of a developing policy designed to help
the industry survive and compete in an international
environment. I have already announced decisions on the
structure of the industry which should give the large firms
the stability they need to proceed with ther internal reorganisation and integration, while encouraging a
much-needed process of amalgamation amongst the medium
and small-sized firms. To-day's decisions carry the
policy a vital stage further. Successive Governments
have failed to come to grips with the industry's basis
/problems