6.
14. In Table 3 an attempt is made to relate these estimates of increased imports to the total available supply of cotton yarn in the UK and to apparent UK home consumption of yarn. Market shares as between home produced and imported yarn are shown and data for 1968-72 is included for comparative purposes.
15. Table 3 indicates a decline in the UK share of the domestic cotton yarn market from an estimated 87% in 1973 to 77% in 1975 if quotas are maintained in their present form and to 74% if yarn quotas were to be abolished. In the latter case it is estimated that imports from the present quota controlled countries would rise from the current 6% to 12% of the domestic market. Much of the yarn imported from these sources is potentially elgigible for benefit under the export subsidy schemes practised from time to time by overseas Governments (see paras 22 to 24).
PRODUCTION AND EMPLOYMENT IN THE UK
16. Employment in the spinning section has until recently been declining, largely as a result of the increase in output per head (see Table 4) but latterly, with improved demand for yarn, the total loss of employment opportunity has been small. The following figures relate to cotton system spinning and are not restricted to cotton as a fibre:
June 1973
June 1971
June 1972
Spinning
29 660
25 610
25 320
Waste spinning Doubling
4 020
3 450
3 110
6 350
5 690
5 930
40 030
34 750
34 360
17.
Workers, both actual and potential,see imports as a throat to employment in textiles. This becomes of particular importance when, as now, industrial activity generally reaches a high level. The holding and recruiting of suitable workers becomes even more difficult, and imports have the opportunity to benefit first from the upsurge in demand. The industry is making determined efforts to repair the damage done to its public image as a reputable and reliable employer. It would be most unfortunate if the threat of increased imports prevented the establishment and maintenance of an adequate labour force, without which the industry cannot remain viable.
18. An increase in cotton yarn imports from the 1973 estimate of 16 600 tonnes to 28 000 or 32 000 tonnes in 1975 would, on a theoretical calculation, lead to a direct loss of 1 900 or 2 600 jobs. The real loss would certainly be greater because of the domino effect that the change from stable to rapidly rising imports of low price imports would have on the industry and its effect on future investment. The economic viability of whole companies would be undermined and closures would lead to a loss of production (cotton and man-made) and employment in excess of the calculated effect as it would lead to a continuance of a situation of low profitability which would make many firms in the spinning section consider whether spinning in the UK was a viable project. Inevitably there would be a further increase in imports in subsequent years.
COMPARATIVE IMPORT STATISTICS UK : THE SIX
In
19. A comparison of the UK import position with that of the rest of the Community is relevant, particularly as it has been argued that the case for the retention of cotton yarn quotas by the UK is undermined by the alleged ability of the industry of the Six to survive unrestricted cotton yarn imports without undue damage. fact, the textile industries of the Six are seriously alarmed by the recent runaway increase in cotton yarn imports from developing countries, including certain of the Mediterrancan Associates, and are seeking remedies.
No comments yet.
Private notes are available after approval.