asked the President of the Board of Trade what was the percentage increase or reduction, between 1960, 1961 and 1962, in the number of gallons of Scotch whisky sold abroad of an age less than that at which it may be sold in this country.

Separate figures for exports of immature whisky are not available, but it is estimated that in 1961, compared with 1960, exports in proof gallons increased by about 50 per cent., while in 1962 compared with 1961 they were about 16 per cent. lower.

Does not this mean that the export of immature whisky now amounts to about 1 million gallons or more per annum? Is my hon. Friend aware of the unfavourable comment about the presence of immature whisky in great potential markets for Scotch whisky, such as France and Western Germany, and will he take steps to place the export of immature whisky on the same basis as it enjoys in the home market by removing from the export field altogether a commodity which can very easily damage the reputation of a great export earner?

I assure my hon. Friend that representations to this effect have been made to us and they are now under consideration.

asked the President of the Board of Trade what arrangements have been made since 1st January, 1963, for new industrial projects in the Bishop Auckland travel-to-work area; and how many jobs are expected to develop from these schemes.

Nine new industrial buildings and extensions totalling 240,000 sq. ft. are either under construction or awaiting a starting date in this area. According to the estimates of the firms concerned, these schemes should produce 900 additional jobs. In addition, an advance factory is under construction in the Crook area and planning is well advanced on another at Aycliffe.

My Question relates to what has been happening since 1st January, 1963. Is the hon. Gentleman telling the House that all the journeys of Ministers to the North-East have led to only 900 jobs during the past six months or so? What is in the pipeline for the immediate future?

With respect, the Question relates to the Bishop Auckland area, and I gave the hon. Gentleman the answer to it.

asked the President of the Board of Trade what approaches his Department has made to growth industries with a view to their expanding in the North-East, and with what results.

The Board of Trade is continually in discussion with firms with growth prospects, representing a wide range of industry. Every effort is made to interest these firms in the opportunities existing in development districts, including the North-East, and in the facilities available under the Local Employment Act. Since 1st April, 1960, 165 firms from outside the region have visited the North-East to view sites or premises.

Do the activities of the Board of Trade include encouraging existing firms to expand by providing them with loans and credits? A good many of the firms already on the site could be expanded if there were this sort of help.

The Local Employment Act covers local expansion, and my right hon. Friend and our officers in the Board of Trade are constantly bringing this to the attention of firms in development districts.

Has my hon. Friend noted the very sensible recommendation made by my hon. Friend the Member for Sevenoaks (Mr. J. Rodgers) in a recent debate, that if the Government were to launch a space communications programme, the growth industry connected with it would be very suitable in the North-East?

My hon. Friend ought to put a separate Question down about space communications. As he knows, a very large number of firms are involved, and one cannot talk in terms of a single industry benefiting from a space programme.

How does the Parliamentary Secretary explain that while the Government have been protesting about all the things they intend to do to increase employment they have reduced their Estimate for expenditure on the promotion of local employment from £40 million in the past year to £24 million in the forthcoming year?

The right hon. Gentleman knows the answer to that as well as I do. In the past year there has not been the expansion of industry that there was in the previous year. [HON. MEMBERS: "Hear, hear."] There is no controversy about this across the Floor; it is just a fact relating to the working of the Local Employment Act. The financial help under the Act is given for industrial expansions. If industry has not been expanding at the same rate as in the previous year, one cannot spend as much.

rose—

We must get on or we shall get into trouble.

asked the President of the Board of Trade if he is aware of the closure of Salts (Saltaire) Airdrie and the loss of 150 jobs; and what steps he proposes to take to replace these jobs.

My right hon. Friend was sorry to learn of the closure of this factory and the consequent loss of jobs. He will continue to use his powers under the Local Employment Act to encourage the introduction of new industry to the north Lanarkshire area and the expansion of industry already established there.

Is the hon. Gentleman aware that nearly 10 per cent. of the insured population in this district is unemployed and that this closure came as a bad blow to the neighbourhood? Does he not think it is about time the Minister programmed the number of jobs per month so that we may know before the end of the year how many jobs will come to the locality?

It is difficult to programme precisely month by month because we in the Department do not control the manning-up of factories which are being built in the north Lanarkshire area. The hon. Member may care to know that 6,700 jobs are in prospect in the north Lanarkshire area. He knows as well as I do that we do not control the pace at which those jobs are manned-up.

Is the Parliamentary Secretary aware that unless the Board of Trade looks after this industry better than it has done during the last two or three years there will be more closures—and in Yorkshire, too?

asked the President of the Board of Trade when he intends to complete the undeveloped portions of the Coatbridge and Newhouse Industrial Estates; and how many jobs will be provided.

An advance factory and two extensions for existing tenants are being built at Newhouse; these projects should provide about 400 jobs. Further development of the Coatbridge Industrial Estate depends on the outcome of an application by an industrial firm now under consideration.

Does not the Parliamentary Secretary realise that to leave a portion of an industrial estate lying vacant, especially after providing the services, is an uneconomic proposition? Will he try to expedite the completion of these estates by building new factories to provide additional employment for the area?

The bon. Gentleman will know that what is much more important than getting on with building factories is getting tenants for them when they are built. In our view, the programme that we are at present carrying out on the Coatbridge Industrial Estate is meeting the immediate needs of industry. We shall be only too willing to undertake further development there when there is some evidence that firms want to go there.

Does the hon. Gentleman realise the implications of what he is saying? We constantly have reference to the desperate efforts which the Government are making to provide new jobs and new avenues of employment after they have been in power for twelve years and have told us that nationalisation was a gross failure and that private enterprise would do the job. [HON. MEMBERS: "Oh."] Certainly. Does not this prove beyond doubt that the industrial system is breaking down and is failing to provide more jobs?

That is not a question. It is an argument and a speech.

asked the President of the Board of Trade if he will now state the amounts in grants and loans provided during the last 12 months under the Local Employment Act to projects in Aberdeen group of employment exchange area; and what is his present policy in this regard for that area.

No offers of assistance under the Local Employment Act were made for projects in the Aberdeen area during 1962. My right hon. Friend's policy is to continue to use his powers under the Act to encourage the introduc- tion and expansion of industry in Aberdeen. He will, of course, welcome any application from those already established in the area with sound projects to create new employment.

Will the hon. Gentleman state the names of the persons and firms to whom the grants and loans were made and the amounts in each case? Does he realise that the phrase used in the Act,

"high and persistent unemployment exists or is threatened",

With respect to the hon. and learned Gentleman, I do not think he heard the first part of the Answer. I said that no offers of assistance had been made during 1962, so I could not give him details about the firms which were offered assistance.

Does the visit of Lord Hail-sham to Glasgow last weekend mean that he has taken over the Board of Trade's job in Scotland as well as on the North-East Coast?

asked the President of the Board of Trade what proposals he has under consideration for changing the film quota system; and when he will consult with the Cinematograph Films Council on the subject.

My right hon. Friend is at present consulting the industry about the desirability of applying exhibitors' quota obligations to cinemas showing 70 millimetre films. He will consult the Cinematograph Films Council as soon as he has the views of representative bodies in the industry.

asked the President of the Board of Trade what progress has now been made in the negotiation of co-production film treaties with European Governments; and when he expects the first treaty to be signed.

The preparatory work for negotiations is nearly finished and my right hon. Friend hopes very soon to be able to discuss with the film producers and with the Federation of Film Unions his proposed instructions to the British negotiators. So far as the last part of the Question is concerned, this is a matter which still depends on others besides ourselves.

Can the Minister of State say why this is taking such a long time? Has it not been many months since this proposal was put forward and, I understand, agreed by practically all sections of the trade? Since certain people abroad, certainly in Italy, have been applying for such a treaty and facilities to be developed, what is the reason for this extraordinary delay?

The hon. Gentleman was, I think, warned by my hon. Friend the Parliamentary Secretary on 13th November, 1962, that a number of complications had to be cleared at this end before negotiations with other countries could start. To skimp work on this would only delay the negotiations themselves.

asked the President of the Board of Trade what steps he proposes to take to secure the implementation of the recommendations in the Report of the Working Group on Export Merchants published in the Board of Trade Journal on 1st February, 1963.

The Report by this informal Working Group suggests a number of ways in which export houses themselves and the national industrial organisations can help co-operation between manufacturers and merchants. The rôle of the Board of Trade has been to bring the group together, and to publicise its findings.

Does not the Minister of State feel that something a little more active is called for from the Board of Trade? The recommendations are modest enough in all conscience. Does not he feel that if there were any delay in implementing them it would be utterly disastrous? Is not he prepared that the State should play an active rôle in promoting exports by selling directly abroad through a State export house?

The hon. Gentleman will appreciate that, within the limits of the reply I have given to his Question, there are certain actions which I can take. I do take them. I am very interested in the rôle of export houses, and I hope that the export houses and their merchants know that.

asked the President of the Board of Trade if he has studied the representations sent to him by the Boilermakers, Shipbuilders and Structural Workers, Salford branch, regarding the refusal of the Russian delegation offer to order ships worth £20 million because 10 per cent. of the payment had to be in Russian oil; and what reply he has sent.

I would refer the hon. Member to my statement on 12th February.

Is it not a fact that we are the only major country in Europe at present refusing Russian oil? Would not its acceptance immediately help to secure for us orders worth £35 million, not just for ships but for heavy engineering products as well? Who comes first—the unemployed, or a handful of American and British oil magnates?

I wonder whether it is possible to get the hon. Gentleman to believe that no specific proposal has in fact been made to us. Therefore, to comment on a hypothetical one would not be helpful.

Will my hon. Friend bear in mind that the oil companies have spent about £2,600 million on equipment, including £800 million on shipping, in the United Kingdom since 1946? Is not this providing employment in the United Kingdom?

asked the President of the Board of Trade why he will not accept the Soviet proposals to increase oil exports to Britain, in view of their offer to take in exchange consumer goods, which would provide increased employment in this country; and if he will make a statement.

My right hon. Friend is not aware of any Soviet offer to buy consumer goods in exchange for oil exports.

My hon. Friend says that he knows of no offer. If I bring him evidence that seven years ago this type of offer was made and that I handed it to his predecessor at the Board of Trade, will he try to do something about it? Whatever my hon. Friend says, there is a feeling in the country that we could have more employment if we would take only a reasonable amount of oil from the Soviet Government.

I am sure that my hon. Friend will wish me to do my best to safeguard the interests of the country by not commenting upon hypothetical matters of this kind. Any specific proposals that are made to us will, of course, be considered.

When such an offer is made, will the hon. Gentleman consider that last year we bought £8 million worth of oil from the United States of America and £19 million worth from Saudi Arabia, neither of which, to the best of my knowledge, is directly dependent upon Her Majesty's Government? Will he bear this in mind?

We will bear all relevant considerations in mind.

Will my hon. Friend bear in mind that large quantities of Soviet oil are being sold to the Italians, who are refining it and reselling it in the sterling area, in return for which the Italian yards, such as Ansaldo, are deriving from Russia large orders for capital equipment? Are we not thus obtaining the worst of all worlds?

I can only repeat to my hon. Friend, whose interest in this matter I fully understand, that we have no specific proposals yet before us to consider.

Sir Cyril Osborne.

On a point of order. Is it in order, Mr. Speaker, for the hon. Gentleman to put this country in the position where we are excepted from all the orders—

Order. In the last Session, with the aid of the House in general, we put an end to the practice of asking bogus points of order because everybody knows that it is only cheating.

asked the President of the Board of Trade whether his attention has been called to the recent orders for tankers, floating cranes and fishing vessels amounting to over £30 million placed by the Union of Soviet Socialist Republics with Japanese shipbuilders; and what steps he proposes taking to improve credit terms and liberalise import restrictions to enable British shipyards to obtain a comparable share of Soviet business.

My right hon. Friend is aware of this order. The facilities which the Export Credits Guarantee Department already offers in respect of ships, and which take full account of officially-backed credit from other countries, should be such as to enable shipbuilders to offer competitive terms in this as in other markets.

The hon. Gentleman has been telling us earlier that he is not aware that this sort of business is being conducted throughout Europe and the world.

indicated dissent.

That is the impression he has left with me. Is he now saying that he is fully aware of it and that it is being conducted with quite a number of countries? Can he say why it is that we are excluding Russia from any trading arrangements on shipbuilding, for example, into which we are now prepared to enter?

I assure the hon. Gentleman that we are making no such exclusion of Russian shipping requirements. If they wish to place orders with us, our shipyards and the Government will be exceedingly glad to see them doing so.

Can I take it, then, from the hon. Gentleman that shipyards in this country, particularly in my division, will be encouraged by his Department if they are prepared to enter this sort of business?

I assume that the hon. Gentleman is referring to long-term credit facilities. I assure him that our ability to offer to our own builders long-term credit facilities is as good as any I know in the world.

The hon. Gentleman keeps telling us that no specific orders have come from the Russians. Can be say whether any discussions have been held with Russian representatives here to try to invite orders?

We are always seeking trade within the trading agreements we conduct with the Soviet Union. The hon. Gentleman is referring to a previous Question. Perhaps it would be safer, and in the interests of everybody, if he read my previous answers and made sure of their terms.

The gist of a number of my hon. Friend's answers on this subject has been that the Government have been waiting for something to come to us. This is National Productivity Year—a year when selling means more than anything else. Is not the Government's approach particularly haphazard? Should there not be a more positive approach?

I hope that I have misheard my hon. Friend. I hope that he is not suggesting that the Board of Trade should actually take upon itself the job of a State selling agency. I want him to appreciate, as I believe he does, that shipyards, amongst other industrial undertakings, from time to time receive inquiries from the Russians. We seek to encourage them and put them in a position to meet any orders which result. That I promise him is what we seek to do.

As there has been all this discussion in the Press and elsewhere about possible orders of this kind, surely the Board of Trade might approach the Soviet authorities and find out what possibilities there are.

I am not responsible for what appears in the Press.

On a point of order. [HON. MEMBERS: "Oh."] Yes, it is a real one. In view of the unsatisfactory nature of the reply, I beg to give notice that I shall seek to raise this matter on the Adjournment at the earliest possible moment.

asked the President of the Board of Trade how far the substantial fall in United Kingdom exports for the second half of 1962 was due to the 15 per cent. fall in exports to Canada; what representations he has made to the Canadian Government over their restriction of United Kingdom imports; and if he will make a statement.

United Kingdom exports seasonally adjusted were 2 per cent. higher in the second half of 1962 than in the first half, though exports to Canada were 10 per cent. lower. We are in touch with the Canadian Government about the difficulties affecting our exports to Canada.

Since over the last twelve years Canada has sold to us £1,700 million worth of goods more than she has bought from us, should we not take more active steps? Does not my hon. Friend realise that there is no cure for unemployment unless we export more?

As the main part of my job is to promote exports, I hope my hon. Friend will accept that I realise the connection between exports and unemployment. I point out to him, however, that our trade is based upon the multilateral principle of trading and not upon bilateral trading. Consequently, a deficit with one country should not be exaggerated.

Multilateral trading will not find work for our unemployed. I want to see more orders for goods that are produced here and will create work. Will not my hon. Friend do something about that?

asked the President of the Board of Trade the number of inquiries from firms wishing to come into the Brandon Urban District Council area of the north-west Durham constituency.

During the past six months the Board has dealt with two inquiries from firms new to the area.

Is the Parliamentary Secretary aware that in this urban district over the last few years Hedley Hope Colliery, Esh Winning Colliery, Waterhouses Colliery, Ushaw Moor Colliery, New Brancepeth Colliery and ancillary undertakings have closed down and that the Government have brought nothing appreciable into the area to relieve the vast unemployment, which is not shown as far as the Local Employment Act is concerned? Will he consider the correspondence which he received a fortnight ago and give due consideration to the application for this area?

I am happy to be able to tell the hon. Member, as, I think, he knows, that one of the two inquiries has resulted in a large project, that of the North British Rubber Company, going to the area. As I believe the hon. Member knows, this is likely to result in substantial employment opportunities and will make a considerable contribution to the area.

asked the President of the Board of Trade, having regard to the fact that unemployment in the Durham Employment Exchange area is now 4·7 per cent., he will add this area to the list under the Local Employment Act, 1960.

Unemployment in the Durham Employment Exchange area in January was at a rate of 3·6 per cent. wholly unemployed, and during the past twelve months the rate has averaged 2·5 per cent. wholly unemployed. My right hon. Friend does not consider that he would be justified in adding this area to the list of development districts.

That is a completely ridiculous answer to the sincere request contained in my Question. Will the Minister look at it again? The figure of unemployment is 4·7 per cent. Is he aware that under the Local Employment Act the average is 4 per cent. and that, therefore, the figure is 7 points above the percentage which qualifies under the Act? Will he give consideration instead of making complete nonsense of the whole Act?

There is no figure in the Act as to percentage of unemployment. The effect of the words is "when the President of the Board of Trade and the Board consider the unemployment to be high and persistent". No figure is given. My right hon. Friend has never committed himself to a figure in public. I point out to the hon. Member that projects sited in the Durham area which would be likely to provide employment for workers from the neighbouring development districts—and Durham is surrounded by development districts—would qualify for assistance under the Local Employment Act. Therefore, nearly any worthwhile project within the Durham Employment Exchange area would qualify under the Act.

Is the Minister saying that no specific figure is used by the Board of Trade as a yardstick? Is it not generally accepted that the figure is 4·5 per cent.?

It may be generally accepted by the hon. Member and his Friends, but I assure him that there is no figure.

The hon. Gentleman had better do his homework.

There is no question of doing homework. I am telling the hon. Member.

asked the President of the Board of Trade what action he is taking to assist the British consortium to finalise the contract for new works and extensions to the Durgapur Steelworks in India, in the face of competition from Japan.

The Government have made India a loan of £22 million to enable British firms to carry out the extension of the existing British-built steelworks at Durgapur. My hon. Friend may, however, be referring to the proposed alloy steel plant, which will also be located in Durgapur and for which British and Japanese firms are in competition.

In thanking my hon. Friend for that reply, may I ask him to bear in mind that many of the British firms who are members of the consortium have, by tendering successfully, brought a great deal of employment to the northern part of the country? Will he do his best in representations to his right hon. Friends to ensure that we get at least reasonable comparable credit facilities?

I am willing to give my hon. Friend the assurance that that sort of consideration is certainly given.

asked the President of the Board of Trade if he will make it a condition of any future trade treaty that a reasonable proportion of goods imported into the United Kingdom shall be carried in British ships.

No, Sir. Our policy is to encourage free competition in international shipping, not to restrict it.

Is it not a fact that nations with which we have an unfavourable trade balance are sending more and more of their trade with us in ships other than British? Is it not a fact that we are sending only 50 per cent. by weight of our trade in British ships? Is it not time that the Board of Trade kept a closer watch on the position?

I assure my hon. Friend that we keep a close watch on the position. If he is raising questions of flag discrimination, for example, or what might be done against it, he should address himself to my right hon. Friend the Minister of Transport.

While agreeing with the British policy, may I ask my hon. Friend to ensure that in the next Kennedy round at G.A.T.T. Britain takes the lead in stopping other countries using flag discrimination and such practices?

I readily assure my hon. Friend that the Board of Trade and my right hon. Friend the Minister of Transport consistently make representations to that effect.

Is my hon. Friend aware that since the Ministry of Transport became responsible for shipping and shipbuilding there is the feeling among some of us that the Board of Trade is not quite as active on behalf of shipping interests as it was in the past? Can he give an undertaking that if that was true it is not true now?

I am happy to assure my hon. Friend that the Board of Trade remains extremely interested in shipping.

asked the President of the Board of Trade what was the total value of British imports from and exports to Kuwait during the years 1958 to 1962, and the total value of shipments of engineering goods to that destination for the same five year period.

The hon. Member will find that details of United Kingdom trade with Kuwait are readily available from Account IV of the appropriate December issues of the Trade and Navigation Accounts which are documents Returned to the Order of this House. Exports of engineering products in the five year period 1958–1962 totalled approximately £33 million.

As that is an average of only just over £6 million a year and as imports from Kuwait many times exceed our exports to Kuwait, does this not demonstrate conclusively that the Board of Trade is making a big mistake in suggesting that oil imports from the Middle East are necessary in order to improve our balance of payments with those countries?

All that the figures demonstrate is that there is a lot of oil in Kuwait but not very many Kuwaitis.

asked the President of the Board of Trade if a date has not been agreed for the proposed visit to this country of the Chinese Vice-President of Foreign Trade.

This is now being discussed with the Chinese authorities in Peking.

Will my hon. Friend bear in mind that desirable though any trade treaty may be, it should be based on a sound foundation? Before this visit takes place, will he put to the Chinese Government the claims of the pensioners and shareholders of the Shanghai Waterworks Company? This claim has been put forward for ten or fifteen years but has never been considered or met by the Chinese Government. Will my hon. Friend make very strong representations before we discuss other terms of trade with that Government?

I understand what my hon. Friend says, but this visit is in order to show the gentlemen concerned something of British technical achievements and to give us the chance of some informal talks on Sino-British trade. If we make pre-conditions on particular points before the talks start, we shall perhaps never get to the particular points either.

Will my hon. Friend then also show the delegation some British moral achievements in that when we have obligations we carry them out?

I shall be glad to do so.

asked the President of the Board of Trade what evidence he has that American firms in Britain are now contemplating moving to Europe consequent on the failure of the Brussels negotiations; and if he will make a statement.

My right hon. Friend has no such evidence.

Does the hon. Gentleman realise that there is a sizeable American investment in Scotland, in particular? Is he aware that there is a good deal of concern in Scotland that there may be reasons why some of this investment should seek to transfer itself from Scotland to the Continent? Can he give a categorical assurance that no recent case and no investigation he has carried out so far leads him to understand that this is what is happening?

To date, I can certainly give that assurance. I understand the hon. Gentleman's anxiety. Perhaps he is thinking of the Remington-Rand Company. We have been categorically assured—and I believe that assurance—that the transference of part of its work to Europe has nothing to do with the Common Market negotiations.

The hon. Gentleman knows perfectly well that, whatever the reasons, 1,100 jobs have been lost as a result. What is his Department doing about it?

That is a completely different question from the one on the Order Paper.

asked the President of the Board of Trade what action he proposes to take to improve facilities for grants for clearing derelict buildings and sites.

My right hon. Friend will continue to use his powers under the Local Employment Act to assist in the clearance of derelict, neglected or unsightly land where this will further the purpose of the Act to provide employment for the benefit of development districts. He has no reason to believe that the facilities for grant provided by the Act are inadequate for that purpose.

Bearing in mind the persistent unemployment on Tees-side, will the hon. Gentleman consider giving Middlesbrough the same facilities as those areas scheduled under the Local Employment Act?

The right hon. Gentleman is going a little further than his original Question. There is a Question a little later which bluntly asks that Tees-side be scheduled.

Will the Board of Trade consider giving assistance for the clearing up of the banks of the Tyne between Newcastle and the coast? Will he initiate talks with representatives of the North-East to see what can be done to provide work and make the approaches worthy of the river?

I will be happy to look into that.

Will the hon. Gentleman make representations to the Minister of Housing and Local Government to see that local authorities are informed of the help they can get from the Government for this work?

I do not accept, without investigation, the implications of that question, but I will discuss this with my right hon. Friend's Department to make sure that these facilities are made known to all local authorities concerned.

asked the President of the Board of Trade if he is aware of the deterioration in trade in south Yorkshire; why the facilities of his Department have not been used to induce expansion of trade as much in this area as in other regions; what reply he has sent to the resolution of the Sheffield branch of the Confederation of Shipbuilding and Engineering Unions, which has been sent to him; and if he will make a statement.

My right hon. Friend would expect south Yorkshire, like other parts of the country, to benefit from the measures recently announced by my right hon. Friend the Chancellor of the Exchequer to stimulate the economy as a whole. He does not consider that any special facilities to encourage industrial expansion are necessary in South Yorkshire, where the rate of wholly unemployed remains below that of Great Britain as a whole. My right hon. Friend has replied to the hon. Member about the resolution of the Sheffield Branch of the Confederation of Shipbuilding and Engineering Unions.

Is the hon. Gentleman aware that trade is still deteriorating and that unemployment in south Yorkshire is on the increase? Is he aware that while we recognise that the aid of his Department is more urgently needed in other regions, we in south Yorkshire are satisfied in our own minds that he could do more to induce industry to come to the area and to encourage more trade and thus cut down the unemployment figures? Is he further aware that, while he is looking elsewhere, there is a danger of another unemployment blackspot growing in this region and that more positive action is therefore required not only by his Department but by the Government as a whole to solve it?

I think that my original Answer indicated the way we are thinking about the problems of south Yorkshire, which we feel are amenable to general measures applying to the country as a whole. They are not as of now particular structural problems, like those in certain other regions, which give the case for separate treatment. However, I will bear in mind that the hon. Gentleman has said about keeping an eye on whether there may be structural changes in future.

Will the hon. Gentleman agree that while we may not be asking for direction of industry into south Yorkshire, we do not want Yorkshire firms to be encouraged to go to other parts of the country?

In all these things one has to get the priorities right, and the major priority at the moment is that where industrial expansion takes place it should be in the development districts.

asked the President of the Board of Trade what the percentage of duty to raw material cost would be for an alkyd resin manufactured from wholly imported raw materials and containing 35 per cent. vegetable oil, 42 per cent. phthalic anhydride and 23 per cent. pentaerythritol; what the percentage duty would be if the proportions of the raw materials were, respectively, 70 per cent., 22 per cent., and 8 per cent.; and what is the percentage duty on imported solid alkyds.

Without knowing the landed cost of the raw materials concerned, the details requested cannot be calculated.

Does the hon. Gentleman appreciate that foreign producers of alkyd resins are in a very advantageous position relative to British manufacturers because of the astronomical rates of duty on the raw materials concerned? Does he not, therefore, agree that it would be a big mistake to impose the recent anti-dumping duty Order? Will he try to appreciate that the home producers of alkyd resins cannot understand his persistent failure to consider the position?

That is a totally different question from that on the Order Paper.

asked the President of the Board of Trade (1) if he is aware that owing to the lack of orders at the Furness shipbuilding yard more men are to be given notice; and what assistance his department will give to offset this redundancy;

Billingham is in the Tees-side group of employment exchange areas, where the rate of wholly unemployed in January was 6·3 per cent. My right hon. Friend is also aware that the Furness Shipbuilding Company have recently declared 700 redundancies to take place during February. As I said to the right hon. Member for Middlesbrough, East (Mr. Bottomley) on 12th February, my right hon. Friend is considering whether he would be justified in listing the Tees-side area as a development district under the Local Employment Act.

Is the hon. Gentleman aware that if these 700 men do finish work within the next week or two the unemployment figure on Tees-side, in Billingham and Haverton Hill in particular, will be seriously affected? Is he further aware that the Furness shipbuilding yard gives work not only to people in the Billingham and Haverton Hill areas but also to men from Middlesbrough and Stockton and the Hartle-pools? Should not the Board of Trade take drastic action about this position?

I can assure the hon. Member that those considerations are very much in my right hon. Friend's mind.

Can the hon. Gentleman say what British tonnage is now under construction in foreign yards and whether any steps are being taken by the Government to persuade British shipowners to have their ships built in this country and not abroad?

Perhaps the hon. Member will put down a Question. That does not arise from this Question.

Will the hon. Gentleman explain why there are these continual delays? What is holding up the scheduling of Tees-side, where there is persistent high unemployment?

I prefer not to say anything more today.

asked the Prime Minister when he last conducted a review of the departmental procedure of submitting names for the Honours List; and what changes were made.

I have nothing to add to the Answer I gave to the hon. Member on 7th February. The departmental procedure is always under review.

Is the Prime Minister aware that this system has already produced a semi-retired block of 87 dames, knights and baronets on his side of the House and that annually 10 per cent. of the awards in the Honours List go to Conservative Party political workers and that outside the House—

I had occasion last week to explain to the hon. Member what the principle was. I thought that he understood it. He can ask about the departmental procedure for submitting names, but his supplementary question goes wide beyond that.

I am afraid that there is such a long list of negatives about this matter that it is very difficult to keep on the lines. May I rephrase my question and ask the Prime Minister whether he is satisfied that this is a fair and just system, that it does not lean politically heavily on one side, that the awards of honours are not mainly going to those in the Conservative Party ranks instead of to the people who justly deserve them and to those who give voluntary services?

The hon. Member's question is about departmental procedure.

When does the right hon. Gentleman propose to conduct another review? When he does, will he take into consideration the fact that there are many of his hon. Friends who have not yet been awarded an honour? Would he be good enough to inform the House why they have not yet been honoured?

After the next twelve years of our being in office that will no doubt be remedied.

asked the Prime Minister what decisions have now been made by Her Majesty's Government following the recent report by the Lord President of the Council regarding the situation in the North-East; which Ministers are affected; and what consequential arrangements have been made.

My noble Friend has given a full report on his recent visit to the North-East and his recommendations are being examined urgently. As and when decisions are made the Departments responsible will announce the measures to be taken.

Will the Prime Minister give an assurance that matters will be speeded up and that we shall not have the constant delays which we have had from the Board of Trade and other Departments concerned with this work in the past?

Yes, Sir. We will deal with them as urgently as possible.

Can the Prime Minister say what new considerations there could possibly be which would alter the argument for the North-East and which have not been known for many months? Is he aware that even today continuing delays are losing orders to Tees-side from the failure to schedule it as a development district?

That is a matter I should like to look into. I heard a supplementary question about it just now, but I should like to look into that further. On the broader issue, several questions have to be settled and we will deal with them as quickly as we can.

asked the Prime Minister if he will now make a statement on his recent meeting with representatives of the Scottish Council; and what immediate plans he has for implementing their proposals.

asked the Prime Minister if he will make a statement on his meeting with the Scottish Council for Development and Industry.

The Scottish Council's representatives placed before me their analysis of Scotland's economic problems and we discussed how the Government could most effectively contribute to the promotion of economic growth in Scotland.

Is not the right bon. Gentleman finally convinced that the Local Employment Act, on which he and the Government lean so heavily, is totally inadequate for solving this problem? In the words of Lord Polwarth, has it really sunk in on this occasion? If it has, can the right hon. Gentleman say when he proposes to bring forward amendments to that legislation and additional incentives to industrialists to go to Scotland and get the 150,000 people off the dole who have been on it far too long?

I could not accept that the Local Employment Act has failed. It has been very successful. Additional measures will be announced in due course.

Is the Prime Minister aware that the measure of his success can be judged by the fact that unemployment in Scotland is now rising towards 140,000 to 150,000? Is he aware that the people of Scotland expect a little more than the vague optimism with which he soothes delegations? When will we get a statement of positive policy designed to meet the special circumstances of Scotland, the North-East and Wales and so on, in addition to the general policies already announced by the Chancellor of the Exchequer and which are quite inadequate for these areas? Can he tell me specifically what part the Scottish mining industry is to play in the new power programme which has just been announced?

Certain steps have been taken and announced, and others will be taken and announced in due course. On the more general question, there is, as the hon. Gentleman says, the broad question of the economy as a whole, of expansion as a whole, and the separate question as to how those benefits can best be extended to Scotland.

Will the Prime Minister bear in mind that it is felt that there should be a greater distribution of industry in Scotland? There is still too much depopulation from the north to the south, aggravating the position. Was this matter taken into account during these meetings?

These meetings were private, but I think they covered a very wide range. They lasted for several hours, and I think that both this one and the one with the trade unions were of great value to me and my colleagues, and I think they were regarded as of some value by the members of the deputation.

Is the Prime Minister aware that many specific proposals have been put to him—for instance, the Highland Development Board, new generating plant, and improvements in Scottish ports and roads—and he consistently says that he is considering them? Can he tell the House when he will come to a decision on whether he will accept or reject them?

Some have already been dealt with and announced, and others will be announced as decisions are reached.

asked the Prime Minister whether he will consult the Commonwealth Prime Ministers with a view to presenting to the 17-Power Disarmament Conference a compromise disarmament plan based on the latest Russian and United States proposals and the 1961 Commonwealth Prime Ministers' programme.

asked the Prime Minister what fresh disarmament initiative he has taken in accordance with his letter to Mr. Khrushchev of 28th October.

I believe our best hope of progress is for all of us to persevere with the detailed negotiations at Geneva, in which the four Commonwealth countries represented are playing an active part. As the right hon. and learned Gentleman no doubt knows, the United States draft plan, which we support, follows the lines of the Commonwealth Prime Ministers' statement of March, 1961, which the Commonwealth Prime Ministers themselves re-affirmed in September, 1962. The United States Delegation at Geneva have also tabled proposals which we welcome for measures to reduce the risk of war. I do not think that new initiatives would necessarily be the best way to make progress at present.

Is not the present deadlock at Geneva due mainly to the fact that both the United States and the Soviet Government are resting on their respective disarmament plans? Should not Her Majesty's Government take their own initiative in this matter? Could not they make a great contribution to a solution of this problem if they were to follow the suggestions made by the Secretary of State for Foreign Affairs that they should take the best parts of both these plans and include them in a compromise plan of their own?

That suggestion has been followed up in the plan for reducing the risk of war, which is exactly what the right hon. Gentleman suggests, a combination of the two plans. With regard to the rest of it, it is largely a combination of the original American plan and that which has the support of all the Prime Ministers of the Commonwealth.

But are not the Government's efforts in this field very limited and disappointing? Do not the terms of the letter to Mr. Khrushchev, to which my Question refers, imply that if Mr. Khrushchev withdrew his missiles from Cuba there was an obligation on the Government to make a new initiative specifically in the field of stage one of the new disarmament process? If this is not what the reference to disarmament meant, what did it mean?

We have made one plan after another. It is not a question of new initiative. It is what I was hoping for and am still hoping for, a new will on the part of the Soviet Government to have serious negotiations.

Since the Commonwealth Declaration on disarmament in 1961 was taken as giving some new hope in the disarmament field, would the right hon. Gentleman recognise the great urgency of this now, following the more forthcoming attitude shown by Mr. Khrushchev in this matter? Does the Prime Minister realise that those who have studied in detail the American and Russian plans, as I am sure he has, recognise that the gaps between them are not beyond the possibility of bridging, and is it not time for the United Kingdom Government to take the initiative in proposing the compromise that is possible between the Russian and American drafts?

Before I answer the question, perhaps the right hon. Gentleman will allow me to congratulate him on his appointment to the high position of Leader of the Opposition. I hope he will not take it amiss if I say that I hope he will live many years to enjoy it.

Might I first thank the Prime Minister for his courteous if slightly bewhiskered comment, and will he allow me to return the courtesy by saying that I regard my tenure of this position as being just long enough to keep the seat nice and warm for him?

We are working at this and we have the great advantage of four Commonwealth countries associated with us with whom we are working in close co-operation. We are anxious to make progress, but, as the right hon. Gentleman and anyone who has been in these negotiations for many years knows, it is, as I say, not merely a question of putting out the right things on paper. It is really a question of getting down to serious negotiation about them.

asked the Prime Minister how many representations have been made to him by trading, commercial and industrial concerns, expressing anxiety and concern at the current economic position prevailing in Great Britain; and what replies he has sent.

The hon. Member will be glad to know that very few of the letters I receive fall within the category he has described. In replying to my post I deal with the points raised by my correspondents.

Would not the Prime Minister agree that grave concern is being expressed about our economic position and other matters of policy throughout the country as a whole? Is the Prime Minister aware that this concern is being further aggravated because of rumour and counter-rumour in the Press about his personal standing in his own party? Does not the right hon. Gentleman think that it would be in the national interest if he now decided to seek a fresh mandate from the electorate about his party's future policy?

That might be a very interesting suggestion, but it is not the Question on the Order Paper, which asks what answers I make to my correspondents.

asked the Prime Minister if he is aware that there has been a permanent difficulty in regard to employment in Plymouth and the southwest of England for a number of years; and if he will give an assurance that the Government, in their efforts to reduce unemployment in the North-East and other parts of the United Kingdom, will not overlook the necessity of finding further employment for people living in the South-West.

Unemployment in the South-West Region as a whole has been slightly below the national average. But there are some areas within the region where unemployment is high and which are listed as development districts under the Local Employment Act. My right hon. Friend the President of the Board of Trade will continue his efforts to encourage industrial development there. My right hon. Friend is satisfied that there should be no problem of persistent unemployment in Plymouth.

May I ask my right hon. Friend to remember that not only Jarrow but Plymouth had a hunger march in the 'thirties, and that there is a chronic disease of unemployment in the West Country? Will he also remember that the payment of industry there is very low, and will be promise to keep an eye on the situation?

Yes, Sir. In 1962 the annual average rate in the region was 1·8 per cent., and I think that in Plymouth there are four new factories which have been there some little time, and others are coming, and I think that the dockyard is likely to give a continuously high level of employment.

asked the Prime Minister what reply he has received from President Kennedy to his representations that British ships trading with Cuba should suffer no restrictions from trading also with the United States of America.

I have nothing to add to the answer which my right hon. Friend the Lord Privy Seal gave the hon. Gentleman on 11th February.

The right hon. Gentleman did not tell me anything. Is the Prime Minister aware that I thought I would receive a better reply from him? Is he also aware that there is great anxiety that we shall be pushed about in this matter, and that, as he told us the other day that this country must be free to trade with all the world, we expect Her Majesty's Government to make this clear beyond a peradventure to the U.S.A.?

Yes. But that is just what my right hon. Friend did say to the hon. Member. He said:

"We have made clear throughout that we do not approve of any restriction on freedom of navigation in times of peace."—[OFFICIAL REPORT, 11th February, 1963; Vol. 671, c. 122.]

Will the Prime Minister transmit to President Kennedy the evidence of many Conservative visitors to Cuba who have borne witness to the fact that the American economic measures have only strengthened Cuban support for Castro?

This is a very complicated question, upon which I really would not like to express a view off the cuff.

Is the right hon. Gentleman aware that the American Administration have recently boasted that they have reduced free world trade with Cuba to one-tenth of its former level? Does the Prime Minister really think that that is a sensible way of trying to free Cuba from domination by the Soviet bloc?

The position that still remains in Cuba is one that causes the Administration of the United States considerable anxiety; especially in relation to the very large number—about 17,000 or 18,000—Russian troops who are, in a sense, occupying the country.