Wool Textile Industry (Export Promotion Levy) (Revocation) Order 2008

rose to move, That the Grand Committee do report to the House that it has considered the Wool Textile Industry (Export Promotion Levy) (Revocation) Order 2008. The noble Baroness said: The order has been laid before Parliament under Section 9(9) of the Industrial Organisation and Development Act 1947. Since its introduction at the request of the woollen industry in 1950, the wool textile industry export promotion levy has provided funds to the National Wool Textile Export Corporation—NWTEC—to promote the export of wool textiles. The statutory levy is collected twice a year from about 100 wool processors and suppliers of fibre. The levy currently raises approximately £186,000 per year, which accounts for just over half of NWTEC’s annual income. The average levy payment per company is about £1,868 per annum. In view of the Government’s aim to reduce bureaucracy by removing outdated and unnecessary legislation, and following representations by some companies in the wool industry that wished to see the levy ended, the Government undertook a consultation in 2007 to determine the future of the levy. We consulted NWTEC, trade associations and other stakeholders, including the trade unions, but most importantly the companies that pay the levy. The overwhelming majority of those who responded to the consultation wished to see the levy ended. Having taken full account of the outcome of the consultation, Ministers have decided to end the levy. Closure of the levy will allow businesses in the wool industry to determine for themselves how they spend their money on overseas marketing. That will bring them in line with other textile and manufacturing sectors. NWTEC and the Confederation of British Wool Textiles have been encouraged to work together and with other related bodies to develop an alternative voluntary funding arrangement to promote the wool textile sector overseas, if that is what the industry wants. Although the majority of those who responded wanted an immediate end to the levy, my colleagues decided that a reasonable period of time should be allowed for NWTEC and CBWT to put an alternative arrangement in place. Over the past few months, NWTEC has been making progress on this front on a voluntary scheme to start in 2009, timed to coincide with the end of the payments that they will receive from the levy collected for the period up to 30 September 2008. It is intended that the revocation order will come into force the day after it is made, but it will have the effect that the Wool Textile Industry (Export Promotion Levy) Order 1970 shall not impose on any person any charge in respect of any period after 30 September 2008. All money due up to that date will be collected and dispersed to NWTEC as normal. Therefore in the current financial year, NWTEC will still receive its traditional payments derived from the levy. I commend the order to the Committee. I beg to move. Moved, That the Grand Committee do report to the House that it has considered the Wool Textile Industry (Export Promotion Levy) (Revocation) Order 2008. 27th Report from the Joint Committee on Statutory Instruments.—(Baroness Vadera.)