Cotton Industry Act 1959 facts for kids
| Act of Parliament | |
|
|
| Long title | An Act to enable schemes made with a view to eliminating excess capacity in the cotton industry to provide for paying compensation for any such elimination and for raising the sums required for that and other purposes by levies on the industry; to enable the Board of Trade to make contributions towards any such compensation and to make grants for the re-equipment of the industry; and for purposes connected therewith. |
|---|---|
| Citation | 7 & 8 Eliz. 2. c. 48 |
| Dates | |
| Royal assent | 9 July 1959 |
The Cotton Industry Act 1959 was a law passed in the United Kingdom. Its main goal was to help the struggling Lancashire cotton industry. This law aimed to reorganise the industry. It also provided money to help factories buy new machines. The plan was mostly voluntary. The Cotton Board was in charge of making these changes happen.
Why was the Cotton Act of 1959 needed?
The cotton industry in Britain, especially in Lancashire, was very important for a long time. However, by the 1950s, it faced big problems. Other countries were making cotton goods more cheaply. British factories often had old machines. This made it hard for them to compete. The industry was shrinking, and many people were losing their jobs. The government wanted to stop this decline.
What did the Act do?
This law was designed to modernise the cotton industry. It offered special payments, called grants, to factories. These grants helped them buy new, more efficient equipment. The Act also encouraged factories to remove old, unused machines. This was meant to make the industry more efficient. The idea was to have fewer, but better, factories. The Cotton Board worked with businesses to make these changes. Factories could choose if they wanted to join the plan.
What happened after the Act?
The Cotton Industry Act of 1959 was the last big law made to help the industry. Earlier laws, like the Cotton Industry (Reorganisation) Act 1936 and the 1939 Act, had also tried to help. However, even with this new law, the cotton industry continued to face challenges. Soon after the Act was passed, the demand for cotton products dropped even more. This made it very difficult for the Act's plans to succeed fully.
