| Previous Section | Index | Home Page |
Mr. Gray: Has my hon. Friend noticed that despite the Government's general lack of concern about the industries that he describes, they have been extremely concerned about one particular area? In the politically sensitive and delicate area of the Scottish borders in the run-up to the parliamentary elections last week, the Government have gone out of their way to help the cashmere industry. Would not Beamglow and other firms wish that they were in that area?
Talking of lack of concern, has my hon. Friend noticed that there are now only two hon. Members on the Liberal Democrat Benches? Although this is the most crucial debate in their parliamentary month, only two of them have stayed to listen to my hon. Friend.
Mr. Chope:
I am grateful to my hon. Friend for his intervention.
We as much as anyone supported the Government initiative to help the cashmere industry. The threat of the sanctions being applied prior to authorisation by the World Trade Organisation put the cashmere industry in particular difficulty. The Government offered up to£40 million in guarantee payments.
Since the ruling went against the European Union, however, the Government have done nothing. No doubt through the diplomacy of the Prime Minister in conversation with the President of the United States, the Government managed to exempt cashmere from the list of products that would be the subject of 100 per cent. tariff--[Interruption.] I give way to the Minister.
Mr. Rooker:
I asked the hon. Gentleman why he kept talking about cashmere, when he knew that it was not on the list.
Mr. Chope:
I am sorry that the Minister does not understand the point made by my hon. Friend the Member for North Wiltshire (Mr. Gray). Cashmere was originally on the list, but it has now been taken off. Before the issue was resolved in favour of the cashmere industry, the Government had agreed to give up to £40 million in assistance. They are not prepared to put a similar sum or any compensation regime in place for equally innocent and deserving victims of the dispute.
Mr. Battle:
Two things--first, the cashmere industry is not located only in Scotland. I come from Yorkshire, and the industry exists also in Bradford, a city next to mine. Secondly, there was a particular difficulty with cashmere. If you knew anything about the textile industry, you would know when the buying season was in America--
Mr. Deputy Speaker (Mr. Michael Lord):
Order. The hon. Gentleman must use the correct parliamentary language.
Mr. Battle:
I apologise, Mr. Deputy Speaker. If the hon. Member for Christchurch (Mr. Chope) knew anything about the textile industry, he would know when the buying season was. That was the reason for the extreme difficulty at the time. We worked to resolve the dispute, to get cashmere textiles and other items off the list, and to reach a sensible solution within the EU. The hon. Gentleman's comments come rich from him. Thousands of jobs in manufacturing went in my constituency. The answer that I got when I was in opposition was that that was due to world recession and I should not worry about it.
Mr. Chope:
I am gobsmacked by the Minister's attitude. I would have hoped for considerably more sympathy for the innocent victims of a trade dispute in which the European Union was found guilty by the World Trade Organisation. In his speech the Minister spoke about the desirability of introducing a compensation regime in favour of the United States. Why are not the Government prepared to introduce a compensation regime for British firms that are the innocent victims of the European Union's failure to deal with the issue?
Mrs. Caroline Spelman (Meriden):
The mock anger displayed by the Minister will cause deep frustration
Mr. Chope:
I am grateful to my hon. Friend for that intervention. If the Minister wishes to intervene to answer the point, I shall give way to him.
Mr. Battle:
We have been trying to get the list down and to ensure that companies are not jeopardised by sanctions. That is the whole point. To avoid further sanctions, we are encouraging negotiations. Of course there will be financial penalties, but we do not want more companies to pay them. Is the hon. Lady suggesting that the Government should buy and store all the products of the companies affected? What sensible proposals does she have, other than direct grant and Government intervention? In the case of cashmere, it was not grant; it was a loan system to back firms up during the short-term buying season.
Mr. Chope:
I shall allow my hon. Friend the Member for Meriden (Mrs. Spelman) to make her own speech. In response to the challenge from the Minister, I would say that if the Government of which he is a senior member had anticipated the ruling of the World Trade Organisation, they would have had a proper contingency plan in place, which would have been a compliant regime to take effect immediately.
If the Government and the EU had done that, no penalties would have been imposed on firms such as the one referred to by my hon. Friend. Those firms are now suffering as a result of the 100 per cent. tariff barrier. They are losing business and some of them will be threatened with bankruptcy. In any event, many will have to shed a large number of jobs.
The Government should have anticipated the situation, and even now they should be getting on and ensuring that a compliant regime is introduced. [Interruption.] Instead, we get much delayed ministerial replies to our questions. The Government shrug their shoulders and say, "There is nothing we can do. We are waiting for the European parliamentary elections."
Mr. Battle:
We are doing things--
Mr. Deputy Speaker:
Order. The Minister must not keep intervening from a sedentary position.
Mr. John Hayes (South Holland and The Deepings)
rose--
Mr. Chope:
I give way to my hon. Friend.
Mr. Hayes:
Does my hon. Friend agree that it does the Government no good to display such a lack of contrition and humility? The Minister sits there barking and shouting in response to a legitimate claim on the part of
Mr. Chope:
I am grateful to my hon. Friend. He gives wise advice to the Government. They get hysterical and say that they are doing all they can, when it is apparent that they are not. If they were doing everything that they could, they would have sorted out the problem already. They are relaxed about the problem and say that it may go on beyond September till the end of the year.
The Government were quick to help the cashmere industry and rather slow to help firms such as those that we have mentioned. We suspect that the Government are rather indifferent because a number of those firms are situated in the constituencies of Conservative Members of Parliament--for example, Woods of Windsor, and Beamglow, which is in the constituency of my right hon. Friend the Member for Huntingdon (Mr. Major). That suspicion, which several of my right hon. and hon. Friends share, as do some of the people who work for such firms, is given credence by the extraordinary attitude of the Minister, who seems totally unconcerned about the plight of those businesses.
Mr. Battle:
Name a Conservative Member of Parliament in Bradford.
Mr. Chope:
I cannot name a Conservative Member of Parliament in Bradford, but I can name an increasing number of prominent Conservative councillors there.
The Minister needs to take the issue much more seriously than he has hitherto. I hope that he will introduce a compensation package for firms that are the innocent victims of the banana dispute. As members of the EU, we obviously take our share of the responsibility, but the EU's failure to comply with WTO rules has meant that people are losing their jobs and are suffering financially in those businesses. All that is happening is that the Government are shrugging their shoulders, which is not good enough.
Mr. Rooker:
We have been discussing bananas for 20 minutes.
Mr. Chope:
I do not know how long we have been discussing that issue, but I know that we are discussing real jobs and real businesses--often family businesses that have been built up over generations and have entered and successfully competed in a very difficult United States market. They are finding that all that investment and effort are being completely destroyed as a result of the Government's behaviour and the failure of the Government and the EU to address this issue sensibly. As far as I am concerned, this subject is worthy of an Adjournment debate in its own right.
| Next Section
| Index | Home Page |