Motor Car Industry

HC Deb 16 February 1956 vol 548 cc2517-9

36. Mr. Lee

asked the Minister of Labour whether he will make a statement on the present employment position in the motor car industry and outline as far as possible the future trends in this industry.

Mr. Iain Macleod

Since the week beginning 9th January there has been some short-time working in the motor car industry in the Midlands affecting about 8,000 workers, most of whom have lost one day's work each week. This is about 3 per cent. of the total number employed in the industry. The future trends in the industry are a matter for my right hon. Friend the President of the Board of Trade.

Mr. Lee

What effect is the recent announcement of an increased Bank Rate likely to have on the prospects of the industry? Is the Minister aware that in the days when I was employed in the industry it was looked upon as purely part-time or seasonal work? If that sort of atmosphere were again to arise in the industry there would be precious little hope of getting this increase in production.

Mr. Macleod

The hon. Member no doubt knows that in the original announcement the B.M.C. said that in its view it was a temporary phase. It is, of course, a matter of opinion to what extent the credit squeeze, the Bank Rate and any other matters may effect the position, and whether there may or may not be long-term trends underlying these recent and, to some extent, significant appearances; but I should not like to speculate.

Mr. Chapman

Has the B.M.C. given to the Minister or his officials any indication when there is likely to be a full-time resumption at the Austin works in Birmingham? Is the Minister aware that there is very considerable concern?

Mr. Macleod

Yes, Sir, I know that, but I am afraid I could not give any estimate when this period is likely to end.

43. Mr. Edelman

asked the Minister of Labour whether his attention has been drawn to the proposed redundancy of 2,500 motor workers at the Standard Motor Works, Coventry, during the next few months; and what action he intends in order to maintain these men in employment.

Mr. Iain Macleod

Yes, Sir. According to a statement issued by the firm 2,500 workers will be temporarily laid off in the summer because of a change in tractor production. The employment exchange service will be available to help them to find other work.

Mr. Edelman

Is the Minister aware that the projected lay-off is regarded in Coventry as a return to the pre-war pattern of seasonal unemployment? In those circumstances, will he bear in mind that any attempt to recreate that tragic pattern will be most strenuously resisted by the engineering workers in that city?

Mr. Macleod

I could not accept any of that supplementary question. As I understand the position, this firm is switching its production to a heavier and more powerful tractor in order to meet competition, and in the long run I should have thought that that was bound to be in the interests of our economy.

Mr. Edelman

Is the Minister not aware that in addition to this approaching redundancy there is a tremendous amount of concealed unemployment in the city and in the Midlands generally, in the engineering industry, arising out of short-time working?

Mr. Macleod

There are trends in that part of the country which we must watch very closely, but in the city of Coventry last month there were 650 unemployed and 1,900 vacancies.

Miss Burton

Is not the Minister evading the whole issue? Does not he realise that when skilled men are put out of work there are no other comparable jobs to which they can go? What is the use of his giving those figures?

Mr. Macleod

The figures are not valueless. The figures of vacancies for the Midlands show a very heavy pressure in that part of the country, probably heavier than in any other part of the country, upon our labour resources. As for the immediate problem created by these changes, we will do everything we can, through our employment exchanges, to help.