Orders of the Day — Textile Industry

Part of the debate – in the House of Commons at 12:00 am on 26 March 1952.

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Photo of Mr George Drayson Mr George Drayson , Skipton 12:00, 26 March 1952

That would at least, perhaps, enable extra profits to be made from which additional taxation could later be enjoyed by the Treasury.

Also, I should like to see a review by the Chancellor of the request he has made to the banks about their policy of advances. On 10th March, I think it was, the Chancellor said he had asked the banks to consider sympathetically any requests made for advances by the farming industry where such loan was for increased production. I think that it would be quite possible to say that the strict conditions which he has laid down could be relaxed for a short while to tide the textile industry over its current difficulties. If we could have other concessions, such as attention to Purchase Tax in the way I have described, to enable stocks to be cleared, then this trouble would be found to be temporary.

But if the outlook is as dark as some hon. Members fear, then the banks and Inland Revenue authorities will no doubt take a different view. If, however, we consider this as a temporary phase, then we are justified in making these alterations in policy.

Mention has been made of the Liverpool Cotton Exchange. There is a feeling in Lancashire that we should like to be able to buy direct from the Raw Cotton Commission at the sterling equivalent of New York prices, plus any difference because of freight charges and brokerage involved. At the same time, owing to the difficulties that some of the spinners are experiencing, I would suggest that the Commission itself should be empowered to give credit for, say, sixty days, when a spinner is taking up raw cotton.

I think that the President was quite right in not coming forward with his suggestions as to how this problem should be tackled in detail; but, as a result of this debate, I am sure that the President will be able to discuss the substance of the matter with other Members of the Government and then come forward with proposals for getting over the present textile troubles.