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29 NOVEMBER 1971 Cotton Textile Industry has fallen by about 11,500 in the last year, but unemployment in the industry increased by only 2,000, so that most of those becoming redundant either found new jobs or withdrew from the labour force. Any increase in unemployment is a matter for concern, as this Government have repeatedly made clear, but even in the textile belt of Lancashire unemploy- ment is not primarily a textile problem.
Mr. McCann: One of the problems we are faced with is that while unem- ployment generally has risen by 20 per cent., in spinning and weaving it has risen by 150 per cent.
Mr. Grant: That may be, but the point I was making was that unemploy- ment is not primarily a textile problem, even in Lancashire.
Mill closures have gone no quicker than the Council forecast. In the first two years after the Report, closures went more slowly than foreseen, and though the rate is now catching up, there are still 200 more mills left in the industry than the Council thought would be needed by 1975.
Imports have risen this year, but there have been special factors. Late ship- ments of woven cotton cloth against 1970 quotas arriving in 1971 swelled the figures earlier this year, while the ending of duty-free imports from the Common- wealth next January must be encourag- ing traders to make the most of this year's facilities. There is also evidence that overseas suppliers have held their prices steadier than United Kingdom producers whose prices rose by about 20 per cent. between 1968 and 1970. If price differentials are a cause of the present situation the new Commonwealth tariff will help.
It is noteworthy that four-fifths of the increase in imports of woven fabrics of man-made fibre come from European and North American sources, not from low- cost suppliers.
The Government are watching the im- port situation closely. That includes the implication of recent United States action. They have put proposals to the indus- try for joint machinery to collect infor- mation swiftly on market developments, including imports. They are ready to use their powers against dumped or sub- sidised imports if industry can make out a case of material injury or the threat
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of it. My hon. Friend the Minister for Industry has already assured the British Textile Employers' Association that the power we have reserved to reintroduce quotas against disruption after next Janu- ary will be used effectively, and that it would be a matter for concern if the Government's object of fostering a com- petitive and streamlined industry were jeopardised. The Government are con- sidering in the light of the employment situation and recent international develop- ments in the textile trade whether there is any need for further action at the present time in relation to the industry.
As regards origin marking, the Gov- ernment have already indicated that if, as they hope, the Private Member's Bill to be introduced by my hon. Friend the Member for Leicester, South-East (Mr. Peel) which, I understand, will in my hon. Friend's absence, be presented by my hon. Friends the Members for Oldham, East and for Cheadle (Mr. Normanton) is framed to provide a satisfactory answer to the fears which have been expressed about the possible deception of the public in the absence of origin markings, it will have the Government's encouragement and support.
They
The Government recognise that a fun- damental factor in the prosperity of the textile industry, like any other industry, is a sufficient level of demand. have taken measures, of which the House is fully aware, to encourage demand in this country. I am confident that these measures will before long revive the de- mand for textiles. Increased national economic activity will also create new jobs in the textile areas and so help absorb as has usually happened in the last 25 years-labour released by the closure of surplus textile capacity. little further ahead, entry into the Euro- pean Common Market will give us a mar- ket five times the size of that in the United Kingdom alone. I am confident that the new cotton and allied textile industry which is emerging will find plen- tiful opportunities in that vast new market.
A
The Government recognise the difficul- ties through which the industry is passing. We appreciate the concern and anxiety of hon. Members about this industry, and the number of hon. Members present for this half-hour Adjournment debate indi- cates that. I do not at this stage think that I can go further than I have done