Oral Answers to Questions — Trade and Commerce – in the House of Commons at 12:00 am on 15 December 1949.
Mr Thomas Horabin
, Cornwall Northern
12:00,
15 December 1949
asked the President of the Board of Trade whether any further de-control of the hardwood trade is in prospect.
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.
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?
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.
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?
Mr Harold Wilson
, Ormskirk
Yes, Sir, I am so satisfied, but if events turn against us, naturally we should have to review the situation.
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?
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.
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?
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.
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?
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.
Mr John Haire
, Wycombe
Can my right hon. Friend say if his proposal is based on the increasing importation of colonial hardwoods?
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.
Sir Eric Fletcher
, Islington East
Does the reply of the President mean that there is no immediate intention of de-controlling softwood?
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.
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