HC Deb 10 November 1952 vol 507 cc567-8
2. Miss Burton

asked the Minister of Supply whether he is in a position to make a statement concerning the allocation of cars to the home market.

8. Mr. G. Williams

asked the Minister of Supply the present quota of total production of motor cars allowed for the home market; and what increase he is authorising.

Mr. Sandys

At the request of the Government, manufacturers are continuing to export as many motor vehicles as possible. The balance will be available for sale on the home market.

Miss Burton

While thanking the right hon. Gentleman for that statement, as, obviously, we are all very glad that as many cars as possible will be exported, may I ask whether he is aware that there has been considerable short-time working in Coventry, because of some of these vehicles not being used for that purpose?

Mr. Sandys

Yes, Sir, I realise what has been going on. We recognise that in order to enable the motor car industry to take full advantage of export opportunities it is necessary to maintain output at a reasonable level. Therefore, despite the falling off in exports due to difficulties overseas, of which the hon. Lady is aware, we have, none the less, not only maintained but actually increased steel allocation to the motor industry in the fourth quarter of this year.

Mr. G. R. Strauss

Are we to take it that the right hon. Gentleman is not altering the export quota of cars as it exists today, but is just telling the motor industry that he does not expect them to be able to keep up to that target during the rest of the year?

Mr. Sandys

I explained the position in answer to a Question the other day, when I told the House that we recognised that owing to the restrictions which have been placed on our motor vehicles in foreign markets it will probably not be possible in the near future for the industry to live up to the targets which had been agreed between them and us. We hope, on the other hand, that they will be able to achieve these targets later.

Mr. Edelman

While welcoming the increased allocation in the home market, may I ask that this increase be made by increasing the total volume of production rather than by diverting cars from the export market, and that if the right hon. Gentleman runs into difficulties in the export market he should take the initiative, as was taken by his predecessor, in trying to break down the difficulties that obviously now exist?

Mr. Sandys

I think I made it clear that there is no question of diverting cars from overseas. I said that we still ask the motor industry to export as many vehicles as possible; but because of the difficulties the industry is meeting overseas the consequence will be that more cars will be available for the home market in the immediate future.