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Page 41 becoming a serious problem for the trade, enquires what would be the Govern- ment's attitude towards arrangements for dealing with it, and indicates that the Federation regard the Percentage Quantum scheme as being an essential feature of any effective solution of the problem.
5. I do not accept the latter argument. I consider that the continuation of 88
the scheme at a time when redundant plant was being scrapped and premises disposed of could only have the effect of retarding the elimination of the less efficient undertakings. I am not convinced that there is genuine redundancy in the calico printing industry still remaining to be dealt with, but in the present economic circumstances of the Lancashire textile industry I believe we should be wise not to commit the Government in advance as to their approval or otherwise of any action to eliminate redundancy if this should prove to be necessary.
6. I consider that the effort to reach agreement with the trade on satisfactory voluntary action cannot usefully be taken further and that if Government action is any longer delayed it can only throw doubts upon the sincerity of our policy on restrictive practices. I therefore propose to inform the Federation that I shall be proceeding to lay an Order before the House which will in effect put an end to their Percentage Quantum scheme and also to their arrangements for the enforcement of minimum prices by making it unlaw, il to make or carry out arrangements of this kind. I propose to add that I retain an open mind on the existence or otherwise of redundancy in the industry and that in the circumstances I shall not for the present make any provision for carrying out the recommendation of the Commission's report relating to the redundancy scheme.
7. An Order giving effect to this decision is at present in draft and I should propose to lay it before both Houses as soon as possible after Parliament reassembles.
Board of Trade,
Horse Guards Avenue, S.W. 1.
21st October, 1955.
P. T.
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