Motor Car Industry

HC Deb 08 March 1956 vol 549 cc2294-9

26. Mr. Edelman

asked the President of the Board of Trade what action he is taking to encourage the export of motor cars.

44. Mr. Jay

asked the President of the Board of Trade what further steps he proposes to take to expand British motor car exports.

45. Mr. Chapman

asked the President of the Board of Trade what further discussions he has recently had with the manufacturers of British motor cars with a view to developing exports and restoring full employment in the industry.

Mr. P. Thorneycroft

My Department is in regular contact with the industry, and the National Advisory Council, which met yesterday, considered the industry's export problems and prospects. The industry is fully alive to the need to increase exports to the maximum, and of the willingness of the Board of Trade to give as much help as possible.

Mr. Edelman

Despite this rather bland statement of the right hon. Gentleman's future intentions, is it not the case that the present crisis in the motor industry stems indirectly from the catastrophic decline in the exports of motor cars from 73 per cent. in the last year of the Labour Government to 43 per cent. under the present Administration? In view of that fact, will not the right hon. Gentleman change his futile policy of exhortation and laissez-faire.

Mr. Thorneycroft

I hope that the hon. Gentleman will hesitate before he casts too many reflections upon our motor car industry. The motor manufacturing industry of this country has a great record in exports, and last year it maintained its position as the premier motor car exporting country in the world.

Mr. Jay

But is not this disastrous fall in the export percentages from over 70 per cent. to under 45 per cent. largely due to the inertia and complacency of the Government? Will the President tell us now, in practical terms, what he will do to restore energy to the export drive?

Mr. Thorneycroft

It is not for any Government to export motor cars; it is for the motor car industry to do that. While it may have seen some decline in its share of world markets, it is still the premier motor car exporter in the world.

Mr. Jay

But is not the President aware that although it is the immediate job of the motor car industry to export motor cars, the rise in the percentage in the early years after the war was due to the generous assistance, encouragement and stimulus from the Government?

Mr. Thorneycroft

The rise was entirely due to world markets at that time.

Viscount Hinchingbrooke

In view of the various irrational fears about the operation of the credit squeeze, and in view of the fact that short time is now being worked in the motor industry, can my right hon. Friend say whether there is any evidence, so far, that motor car exports have diminished because of that?

Mr. Thorneycroft

I would say that the operation of the credit squeeze will certainly have no bad effect upon exports. I am sure that one thing which we should avoid doing is to take artificial steps to expand home demand.

Mr. Chapman

Can the President say whether any target figure has been agreed with the industry in relation to an increase in its exports for the coming year? Secondly, has he seen the article in the Financial Times stating that the failure of the motor car industry—in Sweden in particular—to promote sales, spares and follow-up services has directly resulted in the failure of British cars in that market?

Mr. Thorneycroft

I have seen many comments about the failures of the motor industry and rather too little about the magnificent achievements of the men who work in that industry.

Sir F. Medlicott

Is my right hon. Friend aware that the export of our cars will not be helped if the workers in the industry follow the advice given to them by a shop steward this week to go slow, as that will inevitably still further increase the cost of production?

Mr. Jay

Would it not really be wiser if, instead of talking about the magnificent achievements in the past, the President were to take some practical steps to correct the situation now?

Mr. Thorneycroft

One of the necessary steps in the field of exports is to moderate home demand, not only in this but in other industries. This Government have shown that they have the courage to take the necessary steps in that direction.

40. Mr. V. Yates

asked the President of the Board of Trade, in view of the redundancy in the motor car industry in the Midlands and elsewhere, if he will consult the advisory committee on the motor car industry and report the result of his consultations to the House.

Mr. P. Thorneycroft

The position of the motor car industry was discussed at the meeting of the National Advisory Council for the Motor Manufacturing Industry yesterday. There was a valuable exchange of views. The proceedings of the Council are confidential.

Mr. Yates

In view of the very disturbing news that is coming every day of further increases in redundancy and short-time, does not the right hon. Gentleman think that the time has arrived when he personally should hear the views of this committee from both sides of the industry, and then make a statement to the House about the action that can be taken?

Mr. Thorneycroft

I am very willing to hear the views of this or any other industry on any occasion.

43. Mr. Chapman

asked the President of the Board of Trade whether he will review the hire-purchase restrictions on motor cars in view of the further spread of short-time working and the emergence of unemployment in this industry and its ancillary trades and in order to enable manufacturers to dispose of the present unsaleable stocks of new cars.

Mr. P. Thorneycroft

I do not consider that the situation in the motor industry justifies a relaxation of the restrictions.

Mr. Chapman

Does not the President of the Board of Trade feel that acres of cars which no one can sell is some justification for helping the industry to get rid of them somehow? Has he no policy for dealing with those cars that are piling up, and which no one can buy?

Mr. Thorneycroft

I cannot give any indication of any intention on behalf of the Government to vary the policies which they introduced only recently

Mr. H. Wilson

Would the right hon. Gentleman say whether, in his view, the extent of the short-time working, the lost overtime and so on in that industry has gone as far as the Government want to see it go, or do they want to see it go a little further in pursuance of their economic policies?

Mr. Thorneycroft

Short-time working and other things in the industry are due to a number of factors, seasonal and otherwise, including those to which I have referred about the Government measures, but I can give no indication at all that we intend to vary the policies which we have only recently announced

46. Mr. Chapman

asked the President of the Board of Trade whether he will enter into consultation with the manufacturers of motor cars, with a view to sending joint missions to countries in the Eastern bloc to negotiate the sale of British passenger motor cars.

Mr. P. Thorneycroft

No, Sir. It is the responsibility of the manufacturers and not of the Government to negotiate the sale of motor cars. I am informed that representatives of the motor industry have already explored the market prospects in most of these countries.

Mr. Chapman

Is the President aware that his right hon. Friend the Minister of State has said that he is very anxious to extend trade with these areas? In view of the fact that the main proposals coming from places like China—which wants over a million tractors—come from Governments asking for a direct exchange of views with Governments, why do the Government not try to do something to get trade going?

Mr. Thorneycroft

In the export trade with China the export of nearly all types of motor cars is freely allowed.

Mr. Jay

Have not the President's Answers to Questions on the subject been wholly negative, and would not an expansion in our exports of motor cars to any market be beneficial from the point of view both of the workers in the Midlands and of the national interest?

Mr. Thorneycroft

We cannot have anything better than a free market for selling in, and it is a free market there.

Mr. Jay

But is it not this laissez-faire attitude of the Government that has got us into our present difficulties?

Mr. C. Pannell

The President has just said that there is no limit on the export of motor cars to China, but is it not a fact that he is talking only of motor cars and that, of course, commercial vehicles and tractors are prohibited?

Mr. Thorneycroft

I was asked about motor cars.