RATIONALISATION

Hokitika Guardian, 8 July 1930, Page 7

RATIONALISATION

OF COTTON INDUSTRY,

URGED FOR- LANCASHIRE.

RUGBY, July 4

Important proposals for the rehabilitation of the Lancashire cotton industry are made in the report of a Government Committee of Inquiry, published to-day. The Committee recommended tlie use of cheaper raw material, ring spindles, and highdraft spinning and high-speed winding machinery. The Committee find that the cost of production in Lancashire is substantially higher than among competitors, and they urge upon the, employers and the operatives the importance of considering means- of reducing the ..costs of production, and of recovering -he lost export trade in cotton goods. It is pointed out that, in most cases the reduction of costs could only be gradual, and would require at every stage the closest and most cordial cooperation between employers and the operatives for the manufacture of cheap standard lines in which British woods have been so largely ousted from the Eastern markets.

Short-stapled Indian cotton, it is stated, has hitherton been but little used in Lancashire, where longstapled, but more expensive, American cotton has been almost exclusively preferred. In this way Lancashire’s competitors, some of whom have acouired great skill in the mixing of Indian and other cottons..with. American cotton, have secured an initial advantage by using cheaper cotton for their manufacturer.

The Committee say the formation of larger units in the spinning and manufacturing sections of the industry would also serve great purposes. The industry requires a marketing system so organised as to secure markets for the goods by the most economic methods. . lv

. The Committee find that, the markets, in which the Lancashire cotton industry has suffered the mosi.. serious losses are those in the Neiijy. East, particularly in India, China and Japan. ' ’ 'J.