TOO MANY SPINDLES

Gisborne Times, Volume LXXXIII, Issue 12598, 6 July 1935, Page 6

TOO MANY SPINDLES

PROPOSED REDUCTION IN BRITAIN PLAN TO BUY UP REDUNDANT PLANT GOVERNMENT BILL ISSUED ißri+Lb Official Wireless.). RUGBY, July 4. The Government's Bill providing for a reduction of the excess capo* city in the spinning section of the cotton industry has been. issued. The bill gives effect, with a few exceptions, to the proposals of the committee set up by the _ Federation of the Master Cotton Spinners’ Associations, which were later approved by a large majority of the master spinners. A Spindles Board, with power to. yarrow £2,000,000, will be set up toi buy redundant spinning plant at a price it considers equitable, ano dispose of it by breaking up or sale, but not sale for export. It is understood that. the broad, aim of the board, which isi not oblig ed to buy, nor able to compel a salt of plant, will he to reduce the existing capacity of between. 48,000,000 and 53,000,000 spindles by about--10,000,000. Interest and amortisation of the debt incurred by the board will bo met out of n levy paid for 15 years by every cotton mill with spinning machinery, whether spinning Egyptian or American cotton. It is expected that- the levy will work out at 1 l-6d. per mule spindle per annum. If the proceeds of the levy should fiaU short of the amount neeessary,, the Exchequer is to make good the deficiency. New plant- will bo subject- to » back levy, and for the first three years no new plant- may be set up unless equivalent plant is surrendered on broken up. The hoard’s three members will bo appointed by the Board of Trade, and its operations will be kept under review oil behalf of the cotton industry by an advisory committee Of four representatives of spinners. Whether the Government will proceed with the bill in. the present session depends on the degree of general support forthcoming from oil sections of the House of Commons.