HC Deb 01 March 1956 vol 549 cc1360-1
40. Mr. Osborne

asked the President of the Board of Trade why British car exports have fallen in January, 1956, compared with January, 1955, from 3,325 to 802 in Sweden, and from 1,327 to 66 in Denmark; and, since Sweden's exports to the United Kingdom exceeded her imports from the United Kingdom in 1955 by £42 million, and Denmark's by £45 million, what steps he proposes to take to increase British exports to those two countries.

Mr. Low

Foreign cars, in particular German cars, made substantial gains last year on our exports in both these markets, but the figures quoted by my hon. Friend exaggerate the decline in our exports because British car sales in both markets were exceptionally heavy in January, 1955. One factor which partly explains the large increase of German car exports to Sweden was the removal in mid-1954 by the Swedish Government of a quota restriction, thus enabling German cars to compete in this traditional market on equal terms with British cars.

As to the second part of the Question, the measures which the Government have taken to curb inflation at home are designed to increase our exports to these and other countries.

Mr. Osborne

In view of these alarming figures, and the fact that unless we can export more cars there must be considerable unemployment in Birmingham and Coventry, cannot the Government use our great buying power to insist that more British exports are taken by those people if we are to continue to buy from them?

Mr. Low

There are no restrictions upon exports of our cars into Sweden. We have a quota for exports of our cars into Denmark, and we try to get as large a quota as we can.

Mr. Bottomley

In view of the fact that British cars are the best in the world, surely we ought not to rely upon quotas or tariffs to enable us to sell in those countries. The reason for German and Russian cars getting into Sweden is that our own manufacturers are not energetic enough in selling.

Mr. Low

I do not accept that our manufacturers have not been energetic enough in selling. Last year was an extremely good one for exports of British motor cars, and the House would be wrong to overlook that fact. The British motor car industry remains the largest motor car exporting industry in the world, but we should welcome a substantial increase in exports.

Mr. Shinwell

That is all very well, but is not there something to be said for the principle—although some people may disagree with it—that we should buy from people who are ready to buy from us?

Mr. Low

We are trying to free the markets of the world for our exports and, as a result of the steps taken, in particular by my right hon. Friend the Lord Privy Seal in the last few years, we have substantially increased our exports to O.E.E.C. countries.