CONVIDER THAL

the recommendations of the Textile Council's Productivity and

Efficiency Study, completed in 1969, which is undoubtedly tho

most comprehensive and self-critical examination of its problema

that the industry has undertakon. Launched with the Government'o

encouragement, and partly financed by it, the Study aimed at

finding at long last- a basis of stability for the industry.

It suggested that a viable, though much more compact, industry

could develop by 1975 if the Government would establish more

stable market conditions (notably by ending duty-free entry for

Commonwealth cotton textiles in place of the existing quotas,

which in the Council's view would not in the long term give

the industry the confidence or the incentive to undertake the

investment needed to make itself more competitive) and would

provide additional incentives to re-equipment; and if the

industry would improve its efficiency by modernisation, more

multi-shift working and vertical integration. At the samo

time it forecast that employment would fall from 125,000 in

1968 to 75,000 in 1975, and that the number of mills would fall

from 715 to some 300. The recommendations wera endorsed by

most of the industry's forward-looking leaders.

THE 1969 POLICY

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In accepting most of these recommendations the Labour

Government made it clear that its purpose was to foster an

industry able to stand on its feet in an international environment.

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