machinery, and the Inland Revenue is prepared to consider an
application by the Textile Council for an increase in the
depreciation allowances on textile machinery.
In addition, the two consultants whom I have appointed
to advise me on mergers between medium and small-sized firms in
the industry are in close touch with the I.R.C. They have seen
more than 70 firms, and enough progress has been made to enable the I.R.C. to begin discussions on prospective mergers.
The proposal to replace quotas by a tariff forms an
essential part of a developing policy designed to help this industry
to 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 their internal reorganisation and integration, while
encouraging a much-needed process of amalgamation amcnst the
small and medium firms.
Today's decisions carry the policy a crucial stage further.
Successive Governments have failed to come to grips with the
industry's basic problems; and the industry itself has failed
to adapt sufficiently to changing circumstances. I hope that the decisions that I have announced, provided that they are accompanied
by a clear determination on the pert of both sides of the industry
to carry out the changes recommended by the Textile Council, will enable the Lancashire textile industry once again to take its
place in the forefront of British industry.
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