asked the President of the Board of Trade if he will take steps to improve the procedures for dealing with applications for investment grants.

If the hon. Member will let me know what aspect of the procedures he considers should be improved, I will, of course, consider this.

Is the Minister aware that the present system by which arbitrary questions of eligibility are decided by officials is a cause of delay and great uncertainty?

I do not think that there are serious problems of delay. The average time for processing applications is six weeks and, although this causes administrative work for firms, this is far outweighed, in my judgment, by the fact that they are now getting their cash payments in 12 months from expenditure.

asked the President of the Board of Trade what measures he is now taking to improve the balance of trade.

asked the President of the Board of Trade what further proposals he has for increasing exports and diminishing imports, having regard to the latest balance of trade figures.

The Government are pursuing a wide range of measures designed to promote exports and encourage import saving.

Since there has been little change a year after devaluation, and since the Government apparently expect the effect of the import deposits scheme to be only marginal, are we not in a more serious situation than the Government have so far recognised?

I do not think the hon. Member is right in saying that there has been little change. On the contrary, the visible trade deficit has been improving substantially on a three-monthly basis and moreover, exports are on a sharply rising trend. Together with the import deposits scheme, this creates considerable confidence in our acheiving balance very shortly.

Will not my hon. Friend agree that there is still scope for direct attack on this problem, perhaps by further import restrictions of luxury goods, consistent with our obligations to G.A.T.T. and E.F.T.A.? Will he also put more pressure on firms to export, particularly those which are getting large Government contracts and living largely at the expense of the taxpayer?

I agree with my hon. Friend that more can be done by way of import substitution, but on the restriction of imports, my hon. Friend knows what has been done with the import deposits scheme. A great deal of encouragement has been given by the Government to import substitution and to exports, and the sharply rising trend in exports to which I have referred is a substantial factor in our present situation.

Does not the hon. Gentleman consider that the latest issue of the Bank of England Quarterly Bulletin makes very disturbing reading, in view of its forecast of a continuing deficit in the last quarter of this year? Is it not accepted that the real problem is the new factor that appeared for the first time in November, 1964, namely, a lack of confidence which is now overriding all touches on the tiller made by the Government?

I think that the real character in our present situation is shown by the continuing improvement in our visible trade deficit. We have to achieve as rapidly as possible a trade balance and a substantial balance of payments surplus. There is nothing in the current facts of our situation that in any way justifies lack of confidence. On the contrary, the current figures show that there is sub stantial reason for confidence in our future prospects.

asked the President of the Board of Trade what estimate he has made of the level of manufactured imports in the fourth quarter of 1968 and the first quarter of 1969.

I would not wish to make an estimate so soon after the adoption of the new import deposits scheme.

I understand the reason for that reply, but will not my hon. Friend agree that it is here where the greatest cause for concern in our balance of trade figures lies, and would he not consider that in a month or two, after study of the way in which the import deposits scheme is working, it may be necessary to come to the House with further measures?

The situation in respect of imports has been less favourable than the Government anticipated earlier this year, but my hon. Friend should not exaggerate the situation. A comparison of the June-October figures with the February-May figures shows that there has been only a moderate increase in the import of manufactures, including semi-manufactures, amounting to about 2 per cent.

Did not the Government make an estimate before the introduction of the import deposit legislation, and was not that estimate necessary to enable the legislation to be brought forward? Why cannot the House be told about that estimate?

The effect of the import scheme was discussed when the legislation was being passed through the House. It was made clear that the Government were not prepared to give any estimate of this. They judged the effect on imports to be marginal, but certainly not negligible.

asked the President of the Board of Trade if he will now make a statement on the progress of his discussions regarding the future of the Take over Panel.

I have nothing to add to the Answer my right hon. Friend gave to my hon. Friend the Member for Reading (Mr. John Lee) on 3rd Decem ber.—[Vol. 774, c. 422.]

Is my hon. Friend aware of the extreme disquiet that is being felt among large sections of the investing public, and does he agree that one of the aspects which causes most concern is the estimating of future profits by various companies which are threatened with take-over? Does he further agree that it is nearing the time when his right hon. Friend will need to come to the House for further powers to regulate this as well as other matters concerned with this problem?

I think that there are many aspects of this situation which cause concern. I do not want to make any com ment, because we are still in discussions with the Governor of the Bank of England on this whole subject. I merely refer my hon. Friend to the announcement that was made following the visit of the Governor of the Bank of England to my right hon. Friend, when reference was made to the possible reinforcement of these measures by the Board of Trade.

In view of the failure of the present panel to stand up for the rights of the small shareholder against major city interests, does not my hon. Friend feel that it is unlikely that there will be any confidence in a panel consisting of similar type of people.

It is the interest of the small shareholder that we have very much in mind in these discussions, but I should emphasise that in our judgment it would be much better if a voluntary system of control could be made to work, and it is to that end that we are currently working.

asked the President of the Board of Trade if he is satisfied with the ability of official British agents abroad to act in the promotion of exports of engineering products; and if he will make a statement.

Yes. They are expected to be knowledgeable about local market conditions. It is for firms to provide technical information about their products.

Has my hon. Friend's attention been drawn to the little Neddy Report, which was produced after its conference at the beginning of November, which drew attention to the lack of facilities and organisation of our embassies abroad to deal with exports, particularly of certain engineering projects? As these are an important part of our export drive, does not my hon. Friend think that her attitude is a little complacent. and that something ought to be done about our representation abroad?

I am sure my hon. Friend will accept that engineering products fall into about 1,600 different categories, and that it would be extremely difficult for any commercial officer abroad to have detailed knowledge of every individual branch. What I am sure will produce good results is if the firms themselves brief embassy personnel adequately, before they go on missions, with the right sort of technical information about their products.

asked the President of the Board of Trade what criteria guide him in deciding when to grant permission to firms in the West Midlands to expand there.

Each application for an industrial development certificate is considered on its merits.

Among the factors taken into account are local employment needs and resources, the nature of the project, its ties to a particular area and its contribution to exports and industrial efficiency. Special regard is paid to the suitability of projects for the Development Areas, whose needs must have priority, and where appropriate the overspill towns.

But my hon. Friend does not mention that she takes into account the existence of under-used or empty factory space. As my hon. Friend's Department keeps no record, how is she in a position to decide whether firms should be allowed to expand?

I am sure my hon. Friend will accept that we have some knowledge, although we do not have detailed knowledge of every empty factory, of which firms are going to move out, and we take what is going to happen to their remaining premises into account before deciding what their future pattern should be. In 1967 approval was given for 7· 1 million square feet of new industrial building, which is expected to provide 6,900 jobs. In the first nine months of 1968 approval was given for 8· 5 million square feet of building, which is expected to provide 4,700 new jobs. This is a fairly considerable amount of development.

Is the hon. Lady aware that in my view there is no damn merit about this at all? The Minister is turning down far too many requests for these certificates by small country towns seeking to employ only 30 to 40 people in small factories, and this is absolute nonsense. Will the hon. Lady reconsider the policy of her Government in this matter?

The hon. Gentleman is not only unfair, but inaccurate. It is about time a little of the psychological hysteria which seems to be gripping some parts of the Midlands was dealt with on fact, and not on fancy.

asked the President of the Board of Trade if, in view of the acceptance by the General Agreement on Tariffs and Trade of a waiver allowing developing countries to make preferential tariff arrangements, he will apply to have the waiver extended to developed countries, and between developed and developing countries.

No general waiver in the G.A.T.T. allowing developing countries to make preferential tariff arrangements has been given.

Is not the hon. Lady aware that arrangements appear to have been made between India, the U.A.R., and Yugoslavia for preferential arrangements, and have not these received a G.A.T.T. waiver?

I think the hon. Gentleman will accept that what was considered was the five year agreement, but it was decided that a final decision would be given in the 1969 Session.

asked the President of the Board of Trade if he will make a progress report on the special development districts in the Blyth constituency, giving details of advance factories built, tenants secured and the number of jobs to be made available during the next 12 months.

In the special development areas in my hon. Friend's constituency, four advance factories have been built since 1964. Three of these are occupied and an application for the fourth is under consideration. Other industrial development is also taking place in these areas. Two thousand six hundred and fifty new jobs, including 1,820 for men, are expected to arise within the next four years. I regret it is not known how many of these will become available during the next twelve months.

Is my hon. Friend aware that while that represents a considerable success story of past achievements, the rate of progress in the months ahead to meet the impact of impending pit closures is of itself not sufficient, and will my hon. Friend inject some sort of urgency into her Department to speed up an already satisfactory programme?

I accept that it is bound to be worrying if there is continuing job loss, but I hope my hon. Friend will accept that the special development area projects are bound to have an increasing effect in the coming months.

The hon. Lady keeps talking about new jobs. Will she define that precisely? Is it the same as additional jobs, or not?

It is all jobs of which we are aware which will be created in all new industrial development. I hope that the hon. Gentleman will accept my definition.

asked the President of the Board of Trade what discussions have taken place with Norway and other European Free Trade Association countries concerning Great Britain's decision to impose a 10 per cent. import duty on frozen fish fillets; and what other alternatives were considered before the decision to impose a tariff was made.

My right hon. Friend described the discussions with Norway and other E.F.T.A. countries in the debate in the House on 2nd December. These discussions failed to reach agreement. In the absence of agreement, the 1959 arrangements envisage only reimposition of the duty on frozen fish fillets.—[Vol. 774, c. 1167-83.]

Is my hon. Friend aware that there is some dissatisfaction at this Measure, introduced as it was, and there has been a general recession in the white fish industry? Does he agree that this was not necessarily the best way of dealing with that, and is he further aware that we have with Norway and the Scandinavian countries our best balance of payments relationships in Europe? Will he look at the matter again?

I am well aware of our excellent trading relations with all countries affected by the decision, and I hope that those trading relations continue to improve. However, we have rights under the 1959 arrangements, and it was these rights, and these rights only, which we exercised in a situation in which imports of frozen fish fillets were far beyond the agreed level.

Will the hon. Gentleman note that the Newcastle-upon-Tyne Corporation made an enormous effort in the name of long-term North-East prosperity through the medium of a Norway Week recently, and this type of imposition undermines a great deal of local work done in the name of good relations?

I am well aware of the importance of friendly relations and good trading relations with Norway. We wish to do everything we can to encourage them. But this country has rights under certain agreements, and, if those rights fall to be exercised as a result of a failure to reach agreement, a failure occurring before this imposition of duty was decided upon, then we must exercise our rights under the treaty.

asked the President of the Board of Trade if he will make a statement on Anglo-Norwegian trading relations with particular reference to tariff on frozer; fish fillets.

Since the inception of E.F.T.A., trade has nearly doubled in each direction. My right hon. Friend explained our decision to restore the full most-favoured-nation duty of 10 per cent. on frozen fillets from E.F.T.A. in the House on 2nd December—[Vol. 774, c. 1167-33.] Frozen fish fillets account on average for less than 3 per cent. of our total imports from Norway.

In view of the growing dissatisfaction in Norway at the series of measures affecting trade which have been taken by the Government, would the hon. Gentleman explain—which his right hon. Friend did not do in the debate recently—why this duty was not applied on the excess amount over 24,000 tons rather than on the whole lot?

To answer the first part of the hon. Gentleman's supplementary question, I repeat that we regard our trade with Norway as most important. Our imports from Norway this year have shown a notable increase.

To answer the second part, the hon. Gentleman made this suggestion in the debate. What we did we were entitled to do under the 1959 arrangements. What the hon. Gentleman has suggested we should do would take us outside those arrangements. In any case, the object of the exercise was to reduce imports of frozen fish fillets down to the level of 24,000 tons—but not below that figure—and the hon. Gentleman's suggestion would have been irrelevant to that pur pose.

Hon. Members who represent fishing ports will welcome the 10 per cent. import duty on frozen fish fillets. Is it not a fact that imports were approaching the 30,000 tons mark, which made this imposition necessary? Is it not also a fact that the Minister has been to Vienna, has had amicable discussions with our E.F.T.A. partners and that this whole matter can be settled peacefully next year when the agreement is considered after being in force for 10 years, from 1959?

I agree that there will be further discussions on this matter in E.F.T.A. circles in February or March of next year.

asked the President of the Board of Trade what representations he has had about his refusal to pay investment grants to firms engaged in the business of recovering and processing non-ferrous scrap metals; and what replies he has sent.

I have nothing to add to the answer I gave on 6th November to the hon. Member for Leicester, South-west (Mr. Tom Boardman).—[Vol. 772, c. 87-8.]

Is it not absurd that an industry which invests millions of pounds in machines such as shredders, crushers, balers and saws is not entitled to investment grants? Does not the hon. Gentleman recognise that there is a substantial change in the character of the goods which pass through the scrap processors' works, and that this should entitle them to investment grants?

I entirely appreciate all the consideration which the hon. Gentleman has mentioned, but I do not think that any of the types of equipment to which he refers involve what is required under the Industrial Development Act, namely, the making of an article, and it is to this that the Act requires us to have regard. There is some encouragement to the industry by way of initial allowances on plant and machinery at the enhanced rate of 30 per cent.

My hon. Friend's answer will be received with disappointment particularly in the light of his emphasis on rising imports. Will he assure the House that there is a section in his Department which not only views with alarm the rising level of imports but makes recommendations on how our own industry could save these imports coming in?

I am aware that my answer will be received with disappointment. We have had continuing discussions with the industry concerned. Import saving is of the highest importance, but the Industrial Development Act does not assist all industries engaged in import saving or assisting the balance of payments. The Act concentrates the grant system of assistance on manufacturing industry, that is, on those industries which make a major contribution to exports.

asked the President of the Board of Trade what has been the particular cause of the increase in the volume of imports of finished manufactures in the first nine months of 1968; and to what extent this increase corresponds with estimates made before the Budget.

These imports, about 70 per cent. of which are capital goods, have been rising strongly since the 1950s, in common with the experience of other industrial countries. The increase in volume this year has been about two-thirds the average over the previous 10 years. This slowing down reflects the pause in the growth of home expenditure on plant and machinery. It is not the practice to discuss forecasts of detailed categories of imports.

A large part of the increase in the last nine months comes in the post-devaluation period, and a great deal of it comes in imports of goods which could be manufactured in this country, such as footwear. What is the cause of the increase in products of that type?

I have already made clear that the Government would be glad to see a great deal of additional import substitution. The hon. Gentleman referred to imports of footwear. These, no doubt, are due to the competitiveness of exports from other countries. British industry also is making efforts to export to many other parts of the world, and I hope that these efforts will be successful.

Is not the significant fact regarding these imports of industrial manufactured products, machine tools and so on, that the value has risen by the full amount of the price increases as a result of devaluation, and does not that demonstrate that this is essentially a competitive trade in which specialisation is the guiding light? Do not those facts show up the short-sightedness of Government policies which increase the cost of machinery which we do not make in this country?

Order. Supplementary questions must be brief.

A great deal of international trade arises from specialisation. That is what international trade is all about. However, that does not mean that there are not considerable opportunities for import substitution, of which, I hope, British industry will increasingly take advantage.

asked the President of the Board of Trade what will be the total of loans and grants made toward the cost of the three aluminium smelters out of public funds.

Loans of up to £33 million and £30 million will be made to Anglesey Aluminium Metal Ltd. and the British Aluminium Co. Ltd., respectively. The amounts of investment grants and assistance under the Local Employment Acts for all three companies are confidential.

Since my calculations, in default of the Minister's, make the total £110 million, will the hon. Gentleman set up an independent inquiry by an economist to ensure that the British taxpayer is getting value for money from this enormous expenditure?

No, Sir. Obviously, I cannot comment on any estimate which the hon. Gentleman makes. As I said, and as I emphasised in the debate in which he played a full part, these figures are and must be confidential unless the firms themselves wish to reveal them. We are confident that this project will be of substantial benefit to this country's economy.

Is my hon. Friend aware that this is a continuation of the Tory Government's policy under which they lent money to private enterprise, and is he further aware that we in Lanarkshire did not think that we got value for money?

I am interested to hear my hon. Friend's view. I am sure that in this case the country will have value for money.

In view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter on the Adjournment at the earliest possible moment.

asked the President of the Board of Trade if he will give his estimate of the likely size of the deficit on visible trade in 1968.

No, Sir. I shall wait until statistics for the whole year are available.

I appreciate the Minister's reluctance to stick out his neck, but would he agree to comment on the estimate made by the National Institute that the deficit on visible trade this year will be £791 million, which will be the worst in the history of Britain? Does not this contrast with the record year expected in invisible earnings this year, and is this not a case of the gnomes of the City having to bail out this country again?

It was always expected, and said at the time, that the initial effect of devaluation would be to increase the value of imports more than exports in sterling terms in the short term. But there is now a fast-rising trend of exports and I see no reason why hon. Members opposite find it so difficult to welcome this fundamental and essential fact in our current situation.

Would my hon. Friend not agree that, although some excellent work is being done by many firms and individuals in the export drive, there are speculators in the City who are far more concerned with undermining a Labour Government and Parliamentary demo- cracy itself, than with helping the country's economic position?

I note what my hon. Friend says. What I am most concerned with is building up the nation's exports of both visible and invisible character so that we can get into a balance of payments surplus as rapidly as possible.

asked the President of the Board of Trade whether the rate of earnings in foreign exchange from visible exports during the average of the last three quarters is now as great as during the last three quarters before devaluation.

Yes, Sir. The dollar value was slightly greater; in terms of foreign currencies generally the average increase would be somewhat larger.

Is the hon. Member not aware of the figures given by his right hon. Friend on 25th November, which show practically no difference in the two figures when it comes to foreign currency earnings? Is not this fact just as significant as the increased percentage in volume terms and the increased value in sterling terms?

The hon. Member must remember the difference between dollars and foreign exchange. As I pointed out, in terms of foreign currencies generally the average increase was somewhat larger. In dollar terms, I agree that it is only slightly ahead. I must emphasise that there was bound to be a fall in the dollar value of our exports immediately after devaluation, but we are currently on a strongly rising trend of exports. This is a fundamental fact of our situation.

asked the President of the Board of Trade what is the percentage import content in the value of the output of the tourist industry; and how this compares with manufacturing industry.

In 1963, 18 per cent. of the gross output of manufacturing industry was imported; no corresponding figures are available for those trades which serve tourists, but the weighted average of the proportion imported is likely to be under 10 per cent.

Do not those figures completely destroy one of the Government's main arguments for the imposition of the Selective Employment Tax?

They certainly do not. The important thing is to acknowledge the great importance of tourism and to welcome the proposals which my right hon. Friend put before the House three weeks ago.

Would the hon. Gentleman not agree that those proposals were made without adequate consultation with the industry? If he really hopes to help the industry, should there not be adequate consultation?

There was very full consultation, certainly with the B.T.A. Of course, if organisations wish to make further representations, it is open to them to do so before we introduce the legislation.

asked the President of the Board of Trade what progress is being made in the development of the Springburn-Cowlairs Industrial Estate.

Construction of the 20,000 sq. ft. advance factory on this estate has begun, and is expected to be completed in October next.

Is my hon. Friend aware that it is very heartening to learn of the progress in the demolition of the old railway works and the construction of new factories in the very short period since this estate was acquired? Would she maintain the urgency necessary to complete the job on the estate and so bring more employment to the Springburn area?

I am aware of the urgency of building the estate. I am sorry that the demolition work has been held up because of some technical factors, but we hope that the rest of the work will be completed by the end of this year.

asked the President of the Board of Trade if he will in- troduce legislation to compel repair agencies to display prominently minimum charges where such charges apply; and if he will make a statement.

Those who impose a minimum charge for servicing or repair generally make this clear to the customer at the outset, and, if they do not, the customer would be well advised to ask. I see no need for legislation.

Surely my hon. Friend has given the show away in saying that they "generally" do it; the unscrupulous do not. There may be a case for minimum charges. If it is the sole method of having a repair, is it not unfair to the consumer suddenly to find himself with a fabulous bill for a minimum charge?

No one sympathises more than I do with what my hon. Friend says, but I am sure that he will realise that there are all sorts of difficulties in this field. For instance, someone who had asked for a service in his home on a piece of machinery would have no way of knowing what was displayed in the shop as a minimum charge. It is a problem, but I hope that people will have enough common sense to demand to know the price of repairs before getting the repair man in.

asked the President of the Board of Trade if he will take steps, by legislation or otherwise, to ensure the maintenance of a reasonable after sales service by manufacturers of domestic washing, heating, cooking appliances and other similar consumer durables.

I do not think that this is a subject which can be dealt with by legislation. In general, I believe that reasonable after-sales service is a matter for the manufacturer to arrange and if my hon. Friend has grounds for thinking that the arrangements made by any particular firm or industry are defective perhaps he will convey them to my right hon. Friend the Minister of Technology.

But is my hon. Friend aware that I have had a crop of complaints in this direction, particularly in connection with washing machines? Would she not accept that there should be a minimum condition that the major manufacturers should at least provide a direct after-sales service?

It is to the benefit of any manufacturer to provide a very good after-sales service. I hope that house wives who are not satisfied will tell the manufacturer plainly what they think of his product.

asked the President of the Board of Trade if he will specify the respects in which manufacturing industry makes a more direct and immediate contribution to the United Kingdom balance of payments than service and distributive industries, respectively.

A larger proportion of the output of manufacturing industry is exported. In general manufacturing industry also competes more with imports than do the service and distributive industries.

Would the hon. Gentleman recollect that his right hon. Friend felt it right that there should be discrimination in favour of manufacturing industries, in the short term? Could he say, in the years, 1966, 1967 or 1968. where the benefit of such discrimination of such matters as Selective Employment Tax is shown in the figures?

I can certainly indicate one possible benefit from this discrimination in favour of manufacturing industry. That is that, within the downward turn of the cycle in 1967-68, after the boom in 1966, the fall in manufacturing investment was far less than either was estimated or had taken place on previous similar occasions in similar cycles.

Will the hon. Gentle man convey to his right hon. Friend our sympathy following his accident and our best wishes for his speedy recovery?

Would the hon. Gentleman agree that visible trade can be judged only in conjunction with the movement of stocks, that in: he first nine months of 1964 the visible trading deficit was more than half accounted for by the rise in stocks of £260 million, whereas in the first nine months of this year there was a huge visible trading deficit coupled with a falling in stocks of £26 million?

I thank the right hon. Gentleman for the remarks in the first part of that supplementary question, which I will certainly convey to my right hon. Friend.

On the subject of stock levels, there was a previous Question on this and I repeat that stock levels, after an initial fall, have been rising in recent quarters. I am, of course, speaking of total manufactured stocks. It is absolutely true, however, that we must in future achieve—I hope we shall because this will help our balance of payments—a far better relationship between total production and the level of stocks in this country.

asked the President of the Board of Trade if he will make a statement on the future of Anglo-Brazilian trade.

Yes, Sir. Anglo-Brazilian trade is increasing well in both directions. Our exports to Brazil in January-October this year exceeded £36 million compared with just under £16 million in the same period last year; our imports over this period increased from about £22 million to over £33 million. British industry is giving strong and widespread support to the British Industrial Exhibition to be held in Sao Paulo next March. Both the British Government and British exporters are alive to the potential of the developing Brazilian economy, and I hope to see a continued expansion of trade.

While welcoming that Answer and the trend shown in the figures, may I pay tribute at this stage to the results which have been achieved by the visit of Her Majesty the Queen and Prince Philip to Brazil?

All hon. Members will join in welcoming the demonstration of affection which was shown to Her Majesty on her visit. I am equally sure that all hon. Members hope to see a further expansion of trade between our two countries.

Is my hon. Friend aware that criticisms have been voiced about British exporters not being fully aware of the opportunities which exist in Brazil's markets, including possibilities in the free port of Manaos in the Amazon?

The opportunity that we have been given, from the amount of publicity devoted to the visit of Her Majesty and from the expansion of trade which is already taking place, must be followed up by manufacturers in this country, and I hope that they will take every opportunity of doing so.

asked the President of the Board of Trade what representations he has had from the Flora and Fauna Preservation Society on legislation to ban the sale of vicuna skins in Great Britain, and the import of vicuna skins, in order to lessen the dangers of the extinction of the species; and what reply he has sent.

My hon. Friend has informed me of the Society's views, but I have received no representations from the Society.

What approaches has Peru made?

We have had representations from the Peruvian Government to ban the free entry into the United Kingdom of live vicuna, skins or cloth and we are currently investigating the situation to see if, in collaboration with other large importers and exporters of vicuna, a viable and effective system of control can be established.

asked the President of the Board of Trade what steps he is taking to provide suitable jobs for miners made redundant by the closure of Riddochhill Colliery, West Lothian.

It is expected that the majority of men affected by the closure of Riddochhill Colliery will be offered jobs in other pits within reasonable daily travel to work distance. It is hoped that others of the men displaced will find jobs in the many expanding industries which have set up in West Lothian in recent years. The Board of Trade will continue to use its powers under the Local Employment Acts, 1960 to 1966, and the Industrial Development Act, 1966, to encourage existing industry to expand and new industry to establish there.

How does the Board of Trade define the term, "reasonable daily travel to work distance"?

This is a difficult problem and I am not pretending that it is easy to say to a man who has always worked and lived in the same village, "You must travel some distance to find a job". My hon. Friend will accept, however, that if we are to establish successful alternative industries, we must do that in new modern premises where industrialists will wish to develop. This is bound to lead to a certain amount of travelling.

Were not these miners promised full employment by the Labour Party? Why have those promises been broken?

The miners are well aware that the Government are very concerned about their future. The hon. Gentleman might care to remember that when the Leader of the Opposition talks about the shibboleth of regional policy, he is not concerning himself with either the future of Scottish miners or anybody else in Scotland.

asked the President of the Board of Trade how many requests for industrial development certificates he has received from Portsmouth in 1968; and how many he has granted.

In the nine months ended September, 1968, 18 industrial development certificates for 432,000 sq. ft. were issued in the Portsmouth, Havant, Gosport and Fareham employment exchange areas. No applications were refused.

In view of the unemployment level in Portsmouth, which is higher than the national average and twice that of the region of which it is a part, would the hon. Lady assure us that a positive attitude will always be shown towards requests of this kind?

We must always take the immediate needs of the development areas into priority consideration. Having said that, I assure the hon. Gentleman that we are aware that the seaside towns are facing some difficultties; and we are giving them as much sympathetic consideration as we can.

asked the President of the Board of Trade how many new long-term commodity agreements and how many tariff agreements he has concluded with developing countries in each of the past four years.

A new International Sugar Agreement was concluded this year. The Kennedy Round of international tariff discussions, leading to a multilateral tariff agreement, was concuded in 1967. In each case the United Kingdom and a substantial number of developing countries were parties to the agreemnt.

In view of this country's commitments to U.N.C.T.A.D. and overseas development, would not the hon. Lady agree that there is room for much improvement in this sphere and that agreements of this kind are worth any amount of aid handed out as traditional charity?

Obviously for countries which are one-crop countries this must be an immediate means of development. We are members of a number of existing international commodity agreements and it is to be hoped that this kind of trading agreement will be extended in the future.

Is the hon. Lady aware that this is particularly important to countries like East Africa, which have been placed in difficulty because we devalued and they did not because their circumstances were different? Will she take this point particularly into account?

Yes, Sir. We are very well aware of the difficulties being faced by East Africa and I assure the hon. Gentleman that we will keep this matter very much in mind.

asked the President of the Board of Trade if, in view of the fact that imports of cheese during the first nine months of 1968 showed an increase of more than 17,000 tons against the corresponding period of last year at prices substantially below those ruling in the countries of origin, he will now review the efficacy of the anti-dumping legislation and consider imposing similar quotas to those concerning butter which were introduced in 1962.

No such review is necessary. The anti-dumping legislation as recently amended gives the Board adequate power to act against dumping or subsidisation that is causing or threatening material injury to a British industry. The Board normally requires British producers affected to apply for action under the legislation with supporting prima facie evidence. No application on cheese has been received by the Board.

Is the Minister satisfied that the legislation affords adequate power? If he is, why in the name of conscience does not the Board of Trade use it? Does he not realise that to continue indefinitely this policy of absorbing other people's surpluses at throw-away prices will spell disaster for the dairy industry and a very big reversal for the country as a whole?

Answering the hon. Gentleman's first point, as I said in my original reply, there has been no application from the industry with the necessary prima facie evidence for us to act on it. As to his second point, the hon. Gentleman knows that my right hon. Friend the Minister of Agriculture made a statement in the House on 6th November, 1968, that he was discussing with the countries concerned a scheme of voluntary restraints for a period after 31st March, 1970.

Is my hon. Friend aware that if we enter the European Economic Community there will be no point in anti-dumping legislation, and that the cheese industry will be ruined? What does he intend to do about that?

I know that this is not a question on which I and my hon. Friend are always in agreement, but I would not accept his facts as he states them.

Does not the Minister recall that Article 93 of the Rome Treaty provides quite effective protection against dumping by fellow members of the Common Market?

asked the President of the Board of Trade what representations have been made to him about the employment needs of the Wearside area; and what reply he has made.

I am well aware of the employment needs of Wearside, as of other parts of the North-East, and during my right hon. Friend's visit there in July these were again brought to his attention by the many local representatives he met. My right hon. Friend will continue to do everything possible within his powers to encourage industrial development in the region.

As Sunderland has had the largest percentage of unemployment of any large town in Britain for well over a year, does not my hon. Friend realise that we need exceptional steps to concentrate attention upon the Wearside within overall development area policy?

I sympathise with my right hon. Friend. I know that his own efforts to assist us in the employment field have been herculean. I am sorry that we have been having so much difficulty, but we hope to see a change in the immediate future.

asked the President of the Board of Trade whether he will make a statement on the advance factory in Sunderland which is at present unoccupied.

The Board of Trade is continuing its efforts to find a suitable occupant.

I greatly appreciate my hon. Friend's help in trying to get industry into this factory, but does she not realise that, again, in the circumstances, exceptional measures are necessary; that where the Government have provided a factory they cannot afford to leave it idle, and that we should consider, perhaps, spon- sored production as well as advance building?

I am sure that my right hon. Friend will accept that we are doing everything we possibly can to get someone in to the factory—[Interruption.]—and hon. Gentlemen opposite who so frequently resent the amount of money spent by the Board of Trade might like to bear in mind their thinking about their own policy.

Will the hon. Lady take very much to heart her right hon. Friend's appeal? Is she aware that at this time for every available job in Wear-side there are 68 unemployed men? Is she further aware that the Labour Party in the North-East claimed at the last election that it would clear unemployment in the region in 17 months?

I am not complacent about any area which has these unemployment problems, but I am sure that the hon. Gentleman will accept that his own leader has made comments which lead us to believe that this would not be his policy if he were returned to power.

asked the President of the Board of Trade whether he will make an official investigation into the continued delay in completing the liquidation of the Preston and Blackburn Building Society.

The progress of the liquidation is kept under review by the Board of Trade. I am satisfied that the liquidator is doing all he can to bring this difficult and complicated liquidation to a conclusion.

Is my hon. Friend aware that a constituent of mine has now waited for more than eight years to get back anything at all of his investment in the society? Is he further aware that six years after his appointment the liquidator admitted that he still did not know the total amount of claims outstanding? Is not this far too long a period, is it not a most disturbing state of affairs, and will he take a fresh look at the case?

I know the trouble which my hon. Friend's constituent has had, and I very much sympathise with his position. I am convinced that the liquidator is making all the progress he possibly can in the extremely difficult circumstances of this case, and I am prepared to write to my hon. Friend bringing him up to date on the facts.

asked the President of the Board of Trade when he will introduce legislation to give effect to the proposed hotel grant and loan scheme.

As soon as possible after the Christmas Recess.

Is not the Minister aware that the continuing delay in bringing forward this legislation, far from helping the industry is causing increased uncertainty, for is it not clear that action cannot be taken by the industry solely on the authority of a White Paper?

This is correct, and we fully appreciate the hon. Gentleman's point. We want this legislation as soon as possible. It is complicated, and we expect it to cover the new tourist organisations we are setting up.

Does the Minister appreciate that earlier proposals were made without regard to the needs of the industry and of hoteliers, and that his Department is now writing letters expressing views different from those expressed in the House? Will he, therefore, assure the House that he will take the industry into his confidence, and will also take its advice?

We have had consultations, and we will have more, but, having published the White Paper and my right hon. Friend having made a statement in the House three weeks ago, we believe it to be in the best interests of the industry that we should proceed as fast as we can to get the legislation.

Does my hon. Friend intend to tie his hotel grant and loan scheme to the scheme for classifying, registering and inspecting hotels so as to ensure that consumers get value for money?

This is not the present intention. A scheme such as my hon. Friend mentions is something that must be considered by the new tourist boards. Meanwhile, let us get on with the incen- tives, because I agree that they are needed.

asked the President of the Board of Trade how many applications for industrial development certificates by firms wishing to set up or expand within the scheduled development areas have been refused in the past two years.

Two, Sir.

asked the President of the Board of Trade what was the tonnage of early potatoes imported this year; and how it compares with 1966 and 1967.

303 thousand tons in the first 10 months of this year compared with 234 thousand and 304 thousand tons in the corresponding periods of 1966 and 1967.

In view of the very large imports of potatoes, particularly in the months of June and July when we can grow them perfectly well ourselves, will the hon. Gentleman seek an agreement with our overseas suppliers to exercise restraint in what they send, and will he do so urgently?

This is a question for my right hon. Friend the Minister of Agriculture, but it is against our trading interests and contrary to international obligations to place further restrictions on early potatoes for balance of payments reasons.

What is likely to happen to the importation of new potatoes and the new potato industry in Scotland when we enter the Common Market?

My hon. Friend should not ask me to speculate in that way.

Is the hon. Gentleman aware that very considerable hardship has been caused to growers of new potatoes, particularly in the South-West? will he, therefore, look at this matter with some urgency?

I shall certainly look at this question. If there were a cause for anti-dumping action, the industry could make such an application but no such application has been received.

asked the President of the Board of Trade when he now expects to receive the report of the Edwards Committee; and if he will make a statement.

By the end of March. But we have discussed with Sir Ronald Edwards whether there would be any possibility of advancing this date and he is aiming at the earliest possible moment consistent with a full and complete report.

That is welcome news, but is the hon. Gentleman aware that so long as this report remains unpublished damaging uncertainty must effect the future of the independent airlines, and will the hon. Gentleman take this opportunity to give an assurance that he sees these airlines as playing a major part, where they are sound, in the future British civil aviation industry?

I think that the hon. Gentleman has less confidence in the independents than they have in themselves at the moment. I refer the hon. Gentleman and the House to a most interesting letter from the Chairman and Managing Director of Caledonian Airways, which recently appeared in The Times, I confirm that we have no doctrinaire views about the future of the industry.

Does my hon. Friend agree that it is important to give adequate and proper time for this Committee to pursue its very important work, and is it not a bad thing when hon. Gentlemen opposite continually deploy tactics which make the uncertainty in the independent airlines even worse?

Certainly we should avoid any damaging speculation. This must be a report which covers the many matters within the Committee's terms of reference. Certainly the sooner the better, but we would not wish any hasty stop gap measures meanwhile.

asked the President of the Board of Trade whether he will now make a statement setting out the basis of calculation of the compensation to be paid to British European Airways on purchase of Trident 3-B aircraft.

My right hon. Friend will be making a full statement about financial aid for B.E.A. when we introduce the necessary legislation.

Does the hon. Gentleman agree, as his Department told Flight that Parliament is entitled to ask for the necessary explanation, and the necessary explanation will no doubt be given?

I am sure that Parliament is entitled to ask for information about the calculations upon which the decision to make this financial aid available was based.

In view of the question which has just been asked, can my hon. Friend assure us that the £25 million which have been promised as compensation payable over four years still stands?

It certainly still stands.

asked the President of the Board of Trade what are the losses for the latest year for which he has figures incurred by British European Airways upon domestic air services.

For its last financial year, 1967-68, B.E.A. assesses the loss at £1½ million.

Does not the hon. Gentleman consider that causing B.E.A. to make these losses and then making them up from taxes is just about the best way one can think of to bankrupt independent airlines which have the effrontery to compete with the State?

Making them up from taxes does not arise. For many years the domestic losses have been more than offset by profits on B.E.A.'s international services.

As the hon. Gentleman said in answer to a previous Question that he had no doctrinaire approach to this matter, will the Government not shut their eyes to the proposition that the best way to solve the whole problem of these airlines is to denationalise the two Corporations?

Does my hon. Friend agree that these losses contain a substantial component consisting of losses due to services provided, for instance, to the Highlands and Islands which the independent airlines would not touch with a barge-pole because there is no profit in them?

That is correct. It is necessary to notice also that most independent airlines are not making a profit on their domestic scheduled services at present.

When does the hon. Gentleman expect these services to show a profit?

As the hon. Member knows, operations must be taken one year with another. This has been a bad year; we hope that the next year will be better.

asked the President of the Board of Trade what studies he has made of proposed off-shore airport developments on Lake Michigan, United States of America, details of which have been sent to him by the honourable Member for South Bedfordshire; and if he will seek to finance research into the designing of major off-shore airports for use off British coasts to meet the needs of London and other large urban areas.

asked the President of the Board of Trade what studies are being made into the problems of coastal air ports.

Coastal and off-shore locations are among the sites at present under consideration by the Roskill Commission for a Third London Airport. In addition, my right hon. Friend the Minister of Public Building and Works is looking into some of the practical and cost problems of airports in such locations, to which the Lake Michigan proposals (which he has studied) do not offer any novel solutions; he also has in mind some longer term research into the feasibility of constructing floating airports.

Would my hon. Friend not accept that the main decision must be that major airfields of this type must be located considerable distances from major urban centres and that the two problems facing the Government are the design of such airfields and the production of fast passenger transport connecting them with the urban centres?

Many considerations are involved and I would be wrong to prejudge in any way the recommendations of the Roskill Commission.

Would my hon. Friend confirm that the replies to Questions on 6th November were in no way intended to prejudge any inquiries currently being made into coastal and other sites? Would he agree that some coastal sites would be far more disadvantageous and would affect adversely far more people than some inland sites which are being suggested?

My hon. Friend may be correct in his second statement, but if I am to support him in his first, I do not think that I am required to comment.

The Question refers to London and other large urban areas. Is the hon. Gentleman aware that the large urban area of Merseyside has a first-class airport which is grossly under-used and starved of help by the Government? Would he give the House his plans in this connection and confirm that this starvation has no connection with the fact that the airport is not used by either of the two nationalised Corporations?

I would not accept the hon. Member's assumption for a moment, but I think that there is a later Question about this problem which deals with it more fully.

asked the President of the Board of Trade whether he will make an order under the Civil Aviation Act, 1968, for consultation with local interests at Luton Airport.

I would refer the hon. Member to the Answer which I gave to my hon. Friend the Member for Luton (Mr. Howie) on 21st November.—[Vol. 773, c. 322.]

As that reply only told us that Luton was one of a number of places being considered, will the hon. Gentleman tell us whether he needs further representations to ensure that he gives favourable consideration to this plea?

No further representations are required to ensure that a decision is made with regard to Luton. We shall make a decision as soon as possible, but before making a decision it is right that we should have consultations with the owners, both municipal and private.

But will not my hon. Friend accept that tens of thousands of people in the area are already affected by aircraft-noise, and as tens of thousands more will be affected if the airport is extended, does he not agree that this matter is of the utmost urgency?

I entirely agree that noise at Luton and elsewhere is a real social problem and that we must do all we can to alleviate it. For that reason, we are very anxious indeed to see these consultative committees, which will enable those most affected to express their point of view.

On a point of order, Mr. Speaker. Since the whole of Luton airport lies in my constituency—

Order. Supplementary question—Mr. Howie.

I am deeply grateful to you, Mr. Speaker. When my hon. Friend says "as soon as possible," or words to that effect, will he try to make sure that his definition of "soon" is at least as agreeable to me and my constituents as it is to him, his Department, and the Luton Borough Council?

My hon. Friend is hard to please, such a determined advocate is he for his constituency, but he will be very glad to know that we hope to do this early in the new year.

asked the President of the Board of Trade if he has studied the Report of the Scottish Board for Development and Industry on passenger flying services in Scotland; and what action he proposes to take.

I assume my hon. Friend has in mind the evidence submitted by the Scottish Council (Development and Industry) to the Edwards Committee. I have certainly read it, but must await the Committee's report before deciding what action to take.

Is my hon. Friend aware that at Turnhouse Airport, Edinburgh, we have two morning flights to London within about 35 minutes of each other, and that people have to use cars because the commuter services do not seem to fit in with those flights? Does he not think that this situation requires some investi gation?

I agree that there are problems about operations at Turnhouse but, in the last resort, some matters must be left to the commercial judgment of the operators themselves. If I understand my hon. Friend's supplementary question aright, it comes within that category.

Is the Minister aware that the results of policies followed by successive London Governments has been to separate Scotland from most other countries? Has he seen the B.E.A. summer timetable, which shows that Scotland is not linked with any country in Europe? Will he recommend that Scotland should now be brought back into the world and linked by direct flights to other countries in Europe?