Recent developments, and their probable effect on textile
import levels in 1972
10. One of the objects of the tariff decision was to footer a more efficient, more compact Lancashire industry able to stand on its feet in an international environment. It was always envisaged that imports would remain at a relative high level (though the pattern of suppliers within that level might well change); thus pressure of imports would speed the departure from
the industry of the less viable firms. It was no recognised that, immediately following liberalisation, imports were likely to rise in the shorter term as the formerly restricted suppliers struggled for increased shares of the market. We would not,
therefore, see any reason arising purely from the foregoing analysis of the present situation for recommending a change in import policy. In recent months, however, a number of new factors have entered into the situation which make it nece ̈sary to consider whether it would any longer be prudent to embark on 1972 with no quick and effective means of checking imports. Firstly
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the process of contraction of the industry took place more slowly, in the two years foll wing publication of the Textile Councils Report, than that forecast implied.. In recent months, however, the pace at which firms are being squeezed out of the industry has increased and is likely to accelerato still further under the growing pressure of imports. It is unfortunete that the painful but necessary process of slimming down the Lancashire industry to a more sensible size ond structure is taking place within a relatively short period, rather than over the longer timescale that had been expected; greater social hardship is being caused bec use this more sudden contraction is happening at a time when unemployment levels in Lancashire (as clsewhere) are unusually high, and redundant tertile workers are finding it difficult to obtain other
employment.
6.
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