asked the President of the Board of Trade whether he will arrange for exhibits of nuclear energy plant to be on show at the forthcoming British Fair of Industry and Commerce, which is to be held at Belle Vue, Manchester, in 1958; and whether, in view of the need to stimulate exports, he will encourage exporting industries to take part in the fair.

It is for the Atomic Energy Authority and the manufacturers of the plant to decide whether to exhibit at this Fair. Information about the Fair has been given in the Board of Trade Journal. If exporters judge it will serve their commercial interests I have no doubt they will show at Manchester.

In view of the importance of these exhibitions, and the obvious fact that they have the good will of the right hon. Gentleman and his Department, will the President consider writing to the Lord Mayor of Manchester with a view to making this exhibition as successful as possible? May I make it clear that I am not expecting a reply now?

I will certainly consider that suggestion.

May I ask my right hon. Friend if he is aware that the view has been expressed by members of the Canadian Trade Mission that our goods are still the best in the world, that it would be in the best interests of Canada to buy them, but that we lag sadly behind in taking opportunities, such as that suggested by the hon. Gentleman the Member for Stoke-on-Trent, South (Mr. Ellis Smith), in making this fact known to our potential customers? Will my right hon. Friend do all he can to encourage industry to advertise more?

I think that the views of the Canadian Mission on salesmanship would be of great interest and value to our industry.

asked the President of the Board of Trade if he will take steps to prevent the speculative buying of raw materials in order to bring about the lowest possible price for raw materials.

No, Sir.

Will the President of the Board of Trade give further consideration to this matter? Is he aware that productive industry is in a very difficult position compared with its competitors in other parts of the world? If the hon. Gentleman accepts that line of reasoning as correct, has not the time arrived when we should do something to ensure that productive industry can at least be in the same position as its competitors in other parts of the world?

I found it difficult to understand the hon. Gentleman's Question, because one would suppose that the buying of raw materials would raise their prices rather than lower them. Certainly I want to do everything I can to ensure that British industry gets a fair deal in world markets.

asked the President of the Board of Trade whether he will impose an anti-dumping duty on grey cotton cloth now being imported from Communist China, in view of the increasing quantities being offered at cost-paid prices 6d. below those of efficient producers in Lancashire.

No application has been received for an anti-dumping duty on cotton cloth imported from China. Any such application will be considered but, as my hon. Friend knows, comparisons with domestic prices in the United Kingdom do not constitute evidence of dumping under the Customs Duties (Dumping and Subsidies) Act.

How can my right hon. Friend ascertain the home market price, or the alleged home market price, in a Communist country, where it is well known that these exports are sold at whatever price is needed to met some Communist plan, when they are sold in this country on a consignment basis and not on a true trading basis?

I think my hon. Friend will know that the Act says that if the domestic price in China cannot be ascertained, the export price to a third country or the cost, or estimated cost of production, of the goods can be considered by the Board of Trade. We have not yet had any application for an anti-dumping duty.

asked the President of the Board of Trade whether he is aware that the work of the Consumer Advisory Council of the British Standards Institution is impeded by the non-co-operation of manufacturers; that, since January, 1955, none of the industries asked by the Council for Kitemark schemes has agreed to such a scheme; and if he will set up a committee to inquire into the advisability of granting additional powers to the British Standards Institution.

The Advisory Council is disappointed with the response of some manufacturers to its proposals, but the work that the British Standards Institution carries out for the domestic consumer is certainly not impeded by manufacturers generally. I see no case for setting up a committee to consider the grant of statutory powers to the Institution.

We seem to be making a little progress. May I ask the Minister whether he is aware that the facts in my Question were stated by Miss Marghanita Laski in a recent letter to The Times, and that she is a member of the Consumer Advisory Council? May I ask the right hon. Gentleman, in addition, if he is aware that the manufacturers of children's footwear have definitely refused to cooperate with the Council? What is the good of the right hon. Gentleman giving the Council £10,000 to do the job, and not giving it the authority to get on with it?

I think that the first job of the Council, assisted by the hon. Lady, is to make the public aware of what Kitemark schemes are. My impression is that they do not fully understand. When they do, I think that manufacturers will pay attention.

asked the President of the Board of Trade what has been the value of exports over the last 12 months to a recent convenient date in respect of ingredients associated with nuclear power stations, of plants associated with nuclear power stations, and of nuclear power reactors, respectively, to all overseas countries.

No power reactors or associated equipment have yet been exported.

asked the President of the Board of Trade whether he is aware that the new town of Peterlee has fewer industrial undertakings than any of the other new towns; and whether he will, in these circumstances, make a further effort to induce firms about to embark on extensions to use the facilities of Peterlee for that purpose.

I have nothing to add to the reply given by my hon. Friend the Parliamentary Secretary on 30th July last.

Is not this most unsatisfactory? Surely the right hon. Gentleman will take into consideration the plight of this area and the need for some new industry. This is a rapidly developing area with a population now estimated at 11,000, which is expected to rise to 20,000 in the next few years. Surely something can be done to encourage manufacturers to go there.

I sympathise with the right hon. Gentleman. We will, of course, continue to try to get manufacturers to go there. The two firms which have been attracted to the new town now employ 660 workers and aim to build the number up to 850, which I hope will soon come about.

asked the President of the Board of Trade, in view of the inconvenience of arrangements for setting up a free market area for Europe, if he will issue an illustrated booklet, explaining the project and suggesting the possible difficulties that could be overcome by appropriate business reorganisation and changed techniques.

The proposals for a Free Trade Area in Europe were discussed in a White Paper published in February last and in an official explanatory booklet published in May. As regards the second part of the Question, I would refer the hon. Member to the Answer I gave on 12th November to the hon. Member for Stoke-on-Trent, South (Mr. Ellis Smith).

Is the Minister aware—I am sure he is—that in the Midlands, particularly in the Nottingham and Birmingham area, many of our most important industries are organised in very small units with rather limited and sometimes primitive selling organisations? Could he not use his good offices to try to create some form of co-operative or communal selling organisations among these many small firms, which would help considerably?

That is an interesting idea which I am prepared to examine.

asked the President of the Board of Trade what effect the initial workings of the European Common Market will have on our trade with the European mainland, in view of the arrangements whereby the Common Market will operate from 1st January, 1958; and what plans the Government have made to meet this situation.

The first tariff reductions among the members of the European Economic Community will take place a year after the Treaty of Rome comes into effect. The full implementation of the Treaty will be a gradual process over a period of 12 to 15 years. Her Majesty's Government hope that a wider Free Trade Area will begin to operate at the same time as the European Economic Community.

asked the President of the Board of Trade what restrictions exist in the way of quotas at the present time on Dutch imports into Great Britain and British imports into Holland; when the relaxation or abolition of these quotas was last discussed; and what action he intends to take with regard to them in the next 12 months.

Our trade arrangements are now with the Benelux Customs Union, not with Holland alone. Both we and Benelux have liberalised over 94 per cent. of imports from other Western European countries. Talks with Benelux about quotas in the small part of the field still subject to restriction have just taken place and increases for 1958 have been agreed on both sides.

asked the President of the Board of Trade whether he is aware that imported Dutch bulb quota rights are being freely advertised and bought and sold in this country; and whether, in view of the undesirability of allowing some distributors to benefit and some to suffer as a result of this quota scheme, he will consult with the representatives of British bulb growers and bulb distributors and others concerned as to the possibility of evolving some other method of controlling these imports until such time as the quota can be once again abolished.

My right hon. Friend the Minister of Agriculture, Fisheries and Food and I have no evidence to suggest that allocations are being offered for sale on a significant scale. If there should be any reason to think that the practice is developing we shall certainly consult the trade.

asked the President of the Board of Trade whether he is aware that, in addition to the cars for export found damaged recently at the docks, a number of other such cars have been found, on arrival at their destinations, to have been damaged internally; what reports he has received from his representatives overseas; and if he will make a statement.

No, Sir. But as I said in reply to the hon. Lady's Question on 5th December, I should be glad to bring any evidence of damage to the notice of the manufacturers concerned.

That is not a matter for the manufacturers or the S.M.M.T. Is the Minister aware that the union believes that this damage exists, that it is worried about its effect on the export trade, and that in Coventry attempts are being made to reach some agreement with the agents? Is the right hon. Gentleman also aware that the employing side of the industry agrees with the union on this matter and wants an inquiry? Would he not agree that the export market for the motor vehicle industry is important enough to justify examining the matter?

If the union believes that damage exists, perhaps it would submit information either directly to me or through the hon. Lady, and we will examine it.

asked the President of the Board of Trade what representations have been made by his Department in recent years to the Japanese Government on the subject of Japanese patent law; and with what results.

None, Sir.

Will my right hon. Friend represent to the Japanese Government, or get the Foreign Secretary to do so, that the sort of commercial and trading sharp practices indulged in by Japan over many years have not only been damaging to British industry but are in the long term highly damaging to the reputation of Japan, and that it would serve a very useful purpose for other countries and for Japan in particular if there was in Japan a comprehensive patent law which would ensure fair standards of trading?

Japan is a member of the Industrial Property Convention. I have no reason to believe that the Japanese law fails to give the inventions of foreigners the protection that the Convention demands. If my hon. Friend has any special cases in mind, I should be glad to look into them.

asked the President of the Board of Trade if he is aware that the Chinese Trade Mission inquired into the possibility of purchasing civilian aeroplanes of British manufacture; what inquiries he has received regarding the sale of such aircraft to China; and, in view of the present run down in the aircraft industry, if he will remove existing restrictions on the sale of new and second-hand airplanes.

Yes, Sir: and I know that the British civil aircraft industry would like to sell to China. Any exception to the present embargo, however, would have to be cleared internationally in the Paris Consultative Group. I cannot yet say whether we shall think it right to put any such proposal to our Allies.

In his further deliberations on this subject, will the right hon. Gentleman bear in mind that Far Eastern airlines are not equipped solely with Russian planes, and so other countries must be supplying them? If B.E.A. wants to sell some Elizabethans, why should it be frustrated? Will the right hon. Gentleman use his utmost endeavours to ensure that this country's aircraft industry is placed at least on terms of equality with the aircraft industries of other countries?

I am very anxious to do so, but we shall have to discuss this matter with our allies.

I understood the Minister to say that he would not put forward proposals. Will he at least promise that he will put forward proposals although it is realised that they have to be discussed, considered and agreed upon finally with other countries?

It depends on whether it is thought that there are possibilities of using the aircraft for military purposes.

Can there really be any danger in selling second-hand civilian aircraft to China at present?

asked the President of the Board of Trade whether the Government will now make regulations to implement the main recommendations of Part III of the Hodgson Committee Report on Weights and Measures.

My right hon. Friend proposes to make regulations based on such of those recommendations as can be implemented in this way.

Is the Parliamentary Secretary aware that there is a widespread public demand for action on these lines, particularly from women's organisations? Can he now tell us how soon he will introduce the regulations?

The proposals will have to be discussed with the trade interests concerned, and we hope to be able to table the regulations within a period of about 12 months.

asked the President of the Board of Trade what investigations he has made into the purchase and closing down of Burnley cotton mills with orders on their books with its resulting unemployment; and what action he is taking to accelerate the introduction of new industries into the town as requested by the Burnley Borough Council in correspondence from the Town Clerk on 15th November.

I have called for a report from my Regional Controller on the situation in Burnley.

Is the Minister aware that the population of Burnley has gone down by 10,000 in the last few years, and that a little extra employment at Padiham will not meet the case? Would he agree that a deputation from the Burnley Borough Council might discuss the matter with his Regional Controller in the first instance?

Yes, Sir. I shall be glad to arrange for such a deputation.

asked the President of the Board of Trade what use is to be made of the Government-built Magnesium Electron factory near Burnley, which is now standing idle; if he will consider adapting it for some other manufacturing process or, alternatively, if the site can be cleared and made available for a new industry directed into the area.

A small part of the property is being used for storage, and some of the machinery and scrap has been sold. The rest will be offered for sale as soon as possible. I have no power to direct industry to any area.

asked the President of the Board of Trade how many mills in the Burnley area have closed down or are weaving out in the last two years; if he is aware that the closing of these mills has resulted in a large increase in the volume of imports from India and the Far East as Lancashire exports have declined; and what action he proposes to take to assist the Lancashire cotton trade.

Eight weaving mills in Burnley itself announced their intention of closing down during the last two years, but I am not aware of any evidence that this has been a cause of increased imports. I am in touch with the leaders of the industry about its problems including imports of Asian cloth.

Is not it clear from the steady rise of imports and the phenomenal drop of exports that there appears to be a definite policy of contraction of the Lancashire cotton industry in the interests of foreign manufacturers? Is not that so serious and important as to be a subject worthy of investigation by the right hon. Gentleman's Department?

I am in touch with the Cotton Board on that very subject.

Has the right hon. Gentleman's attention been drawn to a very alarming report from the appropriate officer of the North-East Lancashire Development Area in which attention is drawn to the rapidly reducing population, extending over a long period, in the whole of this area, particularly since 1952, which is the very year in which the Government made it a Development Area? Will he bear in mind that, what with the credit squeeze on the one hand and the European Free Trade Area on the other, the cotton trade is being subjected to increasing pressure and restriction? If the Government will not do anything to save the cotton industry, will they at least take some other industries into the area?

I have not seen the report, but I am grateful to the hon. Member for referring to it. I will look at it. What we have to study is the level of unemployment in all the industries in Lancashire.

In the circumstances, ought not the President of the Board of Trade to be making a major effort to bring new industries into the area? Will he visit it himself, if he has not done so already?

I have been there and my impression is that the growth of industry in Lancashire since the war has been remarkable.

asked the Chancellor of the Exchequer how much profits were reduced for the year 1956–57 due to the contributions paid by employers, under the National Insurance Acts; what was the approximate total loss of revenue to the Exchequer in Income Tax, distributed Profits Tax, undistributed Profits Tax, and Income Tax on dividends; and what were the full contributions paid by employers.

I would refer the hon. Member to the Written Answer which I gave him on 5th December.

That Written Answer says that the amount would be £95 million. Can the hon. Member explain the apparent discrepancy of £89 million paid in contributions by the other employers? Is it not correct that the amount indicated in that Written Answer assumes that the money is applied to undistributed profits? Would not the sum be much larger if it were applied to dividends?

The difference between the total and the £215 million is the amount of the contributions paid by employers who are not traders, such as public authorities. The figure of £95 million which I gave covered the entire tax effect of these allowances on all forms of taxation.

asked the Chancellor of the Exchequer if he is aware that ever since the inception of the 10 per cent. Pool Betting Duty on totalisators at greyhound racing tracks successive Chancellors have agreed that this duty is unfair, discriminatory, and penal; and whether he will take the necessary action in his forthcoming Budget to remove this tax.

I cannot trace the alleged statements nor can I anticipate my right hon. Friend's Budget statement.

Will the Financial Secretary take it from me that statements have been made in the presence of hon. Members from both sides of the House? Is he further aware that if he or the Chancellor of the Exchequer has a bet on a totalisator at a racecourse, he will pay no tax whatever, whereas if one of my underpaid hospital workers puts a bet on exactly the same kind of totalisator at a greyhound track, he immediately loses 10 per cent. in tax? Why should the poor and not the rich be taxed on their bets?

The answer to the first part of that question is "not without evidence". The second part of the question appeared to be loaded.

asked the Chancellor of the Exchequer what estimates he has made of overseas earnings from the operation of banks, insurance companies, commodity markets and other commercial activities in this country other than direct exports and shipping.

Direct earnings net from overseas of all forms of banking, insurance, merchanting and brokerage in the United Kingdom in 1956 are estimated to have been in the region of £125 million.

In view of the great interest in these figures from the point of view of economic policy and the very conflicting estimates made by different economists, will the Economic Secretary consider publishing these details in future balance of payments White Papers?

I will certainly consider the hon. Member's suggestion.

Can the Economic Secretary say how much of that sum was insurance?

I cannot give a breakdown of the figures. If the right hon. Gentleman wants a breakdown, perhaps he will put down a Question.

asked the Chancellor of the Exchequer what is the position now reached in the negotiations for the establishment of a European Free Trade Area; and if he will make a statement.

The Ministerial Committee set up to supervise and direct negotiations is pressing forward vigorously with its task.

It would be only polite to thank the Minister for his reply. I want to direct his attention to the effect which the implementation of the Free Trade Area proposals will have on present Purchase Tax arrangements. It seems to me that once the Free Trade Areas proposals are implemented, there must be either a complete cessation or a drastic alteration of all our ideas about Purchase Tax. Will the Minister say what his opinion is on that aspect of the matter?

In so far as that was a question, it did not seem to me to arise from the original Question.

asked the Chancellor of the Exchequer (1) what decision he has taken in regard to a Government contribution to the loan being raised by the British Petroleum Company Limited, which will carry the right to convert to voting shares in July, 1958, and 1959;

asked the Chancellor of the Exchequer whether he has any statement to make regarding the Government's intentions in respect of the British Petroleum Convertible Debenture issue announced on 2nd December.

Her Majesty's Government will not subscribe to the new issue. If all the new stock is converted in 1958 and 1959, their voting rights will be just under 51 per cent. They are now 55 per cent.

While thanking the Economic Secretary for that reply, may I ask whether he is aware of the widespread concern about the expensive manner in which this loan is being raised? As the State has a majority shareholding in this company, why is there no State subscription to the loan, and why is it that the large profits which will be made out of this loan and the conversion to shares in the next year and the year after will be confined to private shareholders? Further, in the event of a further loan being raised with the right to convert to voting shares, will the Government continue to retain a majority of public shares in this concern?

The hon. Member has raised a number of points. I am not able, as he is, to foresee exactly what will happen in the next two years. The terms of the issue are a matter for the commercial judgment of the board. The arguments against Her Majesty's Government subscribing to the loan are very strong. The arguments are that we should have to finance new investment by Treasury Bills. That would be inflationary and entirely unnecessary and wrong. The question about what will happen in the future is purely hypothetical. The point is that at the moment we retain the control we now have.

Is the Economic Secretary aware that it is possible for the Government, like other people, to sell gilt-edged securities on the Stock Exchange and thereby raise the money? As this was a favourable investment from the Government's point of view and as there was priority for holders of B.P. ordinary shares, why should not the Government have subscribed to the loan in the taxpayers' interest?

I do not think that it is the duty of the Government to "stag" new issues.

May we take it that in the underwriting of this issue and its allocation directors of the Bank of England will receive the usual priority?

asked the Chancellor of the Exchequer whether he is aware that, on 5th November, bank notes to the value of £5, enclosed as a gift in a letter addressed by K. A. Crawford, Craigaved, County Down, to Able Seaman J. McKnight on board H.M.S. "Hogue", were removed from the said letter and seized by Her Majesty's Customs and Excise, King Edward Building, E.C.1; and to what extent the rules governing the export of currency to foreign territory are applicable to Her Majesty's ships.

Yes, Sir. The export of United Kingdom banknotes by post to all destinations, including sterling area countries and Her Majesty's ships on overseas stations, is prohibited.

While thanking my hon. Friend for his information, may I ask whether he will consider the possibility of returning the £5 note in question to Mr. Crawford? With the co-operation and assistance of his right hon. Friend the Postmaster-General, will he endeavour to bring the restrictive provisions of the Exchange Control Act, 1947, to the notice of those who send gifts to serving seamen? Will he further consider whether the restrictive provisions of that Act—which was passed by a Socialist Government—applying to Her Majesty's ships should now be repealed?

In this instance the money will be returned to the sender. I will certainly examine my hon. Friend's suggestion relating to ways in which more publicity may be given to this requirement. It is, I am afraid, necessary that this restriction should be maintained on Her Majesty's ships overseas for the protection of sterling.

asked the Chancellor of the Exchequer, in view of the fact that the sterling is now undervalued in relation to the internal purchasing power of the dollar in the United States of America, if he will now raise the travel allowance to that country.

No, Sir.

While recognising that a great step forward has been taken this year in making the £100 allowance available, may I ask whether my right hon. Friend would agree that the real value of the £ in terms of internal purchasing power in the United States in relation to the dollar is about 4·50 rather than 2·80? Would he not agree that it would make a great contribution to our prestige and standing in the United States, as well as a contribution to confidence in the £, if the restriction were further reviewed?

It is true that £100 goes further in this country than it does in the United States of America, and that is equally true of a great many other countries, I may say. But, as my hon. Friend said, this was a step forward and it has been of great assistance, particularly to businessmen, but my right hon. Friend does not see his way to increasing the allowance at the moment.

asked the Chancellor of the Exchequer whether it is the Government's intention to pay this year's instalments of capital and interest on the United States and Canadian loans when they fall due on 31st December.

asked the Chancellor of the Exchequer the Government's intentions in regard to the debt payments due at the end of this month arising from the United States and Canadian Loan Agreement of December, 1945.

asked the Chancellor of the Exchequer if, having regard to the circumstance that the December gold and dollar reserve figures will be diminished by about 190 million dollars, which represents the interest and capital payments due on the United States, Canadian and other loans, he intends to ask for deferment of these payments or make further borrowings.

My right hon. Friend hopes to announce a decision next week.

While acknowledging that there is no question of default in this case, will my right hon. Friend, in considering this matter, bear in mind that we are entitled to claim only seven such deferments in this century, and that if the deferment is claimed we shall have to pay interest on the interest? Is my right hon. Friend aware, furthermore, that the Government gave an assurance at the time that the new Agreements were entered into that it was not proposed to claim the major part of these deferments in the early years after the new Agreements? Can my right hon. Friend say further—

Order. I think the hon. Member has given quite a mouthful already to the Economic Secretary.

I can assure my hon. Friend that all relevant considerations will be borne in mind.

asked the Chancellor of the Exchequer if he is aware of the unsatisfactory supply and variety of Her Majesty's Stationery Office publications in Glasgow; and if he will now consider establishing a sales branch in that city.

No, Sir.

Does the Financial Secretary recall that in a Written Answer on Friday last he stated that the total sales, retail and wholesale, of these publications in Glasgow were at least equal to those in Edinburgh? Will he state the circumstances which justified the establishment of new offices in Birmingham and Bristol since the war but which did not justify an office in Glasgow, which is a commercial centre?

As the hon. Gentleman says, the sales are approximately equal in Edinburgh and Glasgow, but the maintenance of a Stationery Office shop in both cities would not be justified by the sales.

asked the Chancellor of the Exchequer whether this country will follow the lead given by other European nations in dropping the requirement of the carnet in respect of visitors bringing their cars here.

No, Sir; we have a much higher revenue interest and a large home industry to protect; but further simplification of the system is being examined.

Is it not a fact that one of the countries which have granted the concession has an industry as large as ours? Why should we be regarded as the most sticky and stodgy of all nations in Europe in these matters? Would it not be to our economic advantage to give this facility to encourage tourists who wish to bring their cars to this country?

A very good deal is also at stake in revenue and protection—more than in the case of the country which my hon. Friend has in mind.

asked the Chancellor of the Exchequer why an accompanied motor car has to be examined separately by landing officers and waterguard officers; and what consideration has been given to altering the regulations to simplify the procedure at ports.

A recent review has established that the balance of advantage is against altering the present system, whereby the landing officer assesses duty on imported cars and the waterguard officer is responsible for the prevention of smuggling.