Hardwood (De-control)
Oral Answers to Questions — Trade and Commerce

Photo of Mr Harold Wilson

Mr Harold Wilson (Ormskirk)

Yes, Sir. I am satisfied that the need for continuing to import hardwood on Government account has ended, and all hardwood will therefore revert to private trading on 16th January next. At the same time, price control of imported hardwoods will be removed. Details of the scheme for reversion to private buying have been worked out by my officials with a committee of the hardwood trade and will be announced shortly. It will, moreover, be possible, as part of the additional measures of import relaxation which I have just announced, to permit any private trader to import hardwood freely from a wide range of countries.

Photo of Mr Marcus Lipton

Mr Marcus Lipton (Lambeth Brixton)

Is my right hon. Friend satisfied that this relaxation will not lead to an increase in the price of hardwood, and is he taking steps to ensure that that will not be so?

Photo of Mr Harold Wilson

Mr Harold Wilson (Ormskirk)

No, Sir, it will not lead to an increase in the price. If I were not so satisfied I should have insisted on maintaining price control.

Photo of Mr John Haire

Mr John Haire (Wycombe)

Is my right hon. Friend satisfied that sufficient supplies of hardwood under the proposed arrangement will be forthcoming to the furniture industry, and that there will not be an increase of price?

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Mr Harold Wilson (Ormskirk)

Yes, Sir, I am so satisfied, but if events turn against us, naturally we should have to review the situation.

Photo of Mr Anthony Hurd

Mr Anthony Hurd (Newbury)

Can the right hon. Gentleman tell the House why it has been possible to free imports of hardwood and not softwood? What is the difference?

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Mr Harold Wilson (Ormskirk)

There is a big difference in the availability of hardwood and, secondly, in the proportion obtained from dollar sources. If I gave the hon. Gentleman a full account of the difficulties I have had with the hardwood trade, to make sure that when they were decontrolled they did not completely restrict competition by quotas among themselves, and also prevent new entrants coming in, he would realise the great difficulty I should have to face in the case of softwood.

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Mr Thomas Scollan (Renfrewshire Western)

Can the President tell the House if the Chancellor is prepared to allow a certain number of dollars for the purchase of this hardwood?

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Mr Harold Wilson (Ormskirk)

There are a few types of speciality hardwoods essential for industrial use, and not available from other parts of the world, which have to be obtained from dollar countries, and will continue to be obtained from dollar countries.

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Mr William Shepherd (Bucklow)

What does the right hon. Gentleman intend to do with the junk bought on Government account and now littering the country?

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Mr Harold Wilson (Ormskirk)

I do not accept the hon. Gentleman's word "junk" in any sense, but arrangements have been made between the timber control and the trade for selling off the stocks at present in Government hands.

Photo of Mr John Haire

Mr John Haire (Wycombe)

Can my right hon. Friend say if his proposal is based on the increasing importation of colonial hardwoods?

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Mr Harold Wilson (Ormskirk)

Yes, Sir, we are importing vastly more colonial hardwood now than we have ever done before—I think something like five times or more the amount we were getting before the war—from the major timber producing colonies.

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Sir Eric Fletcher (Islington East)

Does the reply of the President mean that there is no immediate intention of de-controlling softwood?

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Mr Harold Wilson (Ormskirk)

We have been looking at it and there have been preliminary discussions with the trade. But there have been thrown up a number of tremendous difficulties, and until those difficulties have been overcome there can be no question of de-controlling softwood.