HC Deb 25 July 1957 vol 574 cc572-3
13. Mr. Edelman

asked the President of the Board of Trade whether his attention has been drawn to the increasing control by North American companies of firms in the British motor industry; and what action he has taken, through the Motor Industry Advisory Council, to ensure that the policy of the motor industry as a whole remains subject to the requirements of national policy.

Sir D. Eccles

If by North American the hon. Gentleman means the Canadian people who have stood loyally by Great Britain for 200 years, I see no reason why they should not invest in the British motor industry.

Mr. Edelman

The right hon. Gentleman has begged the Question. Is it not the case that with the prospective sale of the Standard Motor Company, more than half of the British motor industry will have passed into North American hands; and that in spite of the fact that Massey-Harris-Ferguson's is nominally a Canadian company, a great deal of the shareholding is in American hands? Does he consider it desirable that the policies of this great exporting and strategic industry should be decided in America. Will not the Government take action to ensure that the industry's policies are decided, not in Detroit, but here in Britain?

Mr. Ellis Smith

It is a bit late in the day.

Sir D. Eccles

I think that the hon. Gentleman is rather unfair to the American-controlled companies here, which have really made a very valuable contribution to our exports. I think that this investment by the Massey-Harris-Ferguson company here will be a good thing.

Mr. Osborne

Is not it a fact that American capital in Dagenham and Luton has brought prosperity and high wages to the workers in those towns? Is my right hon. Friend aware that no steps should be taken to prevent capital, which we are unable to provide, coming to this country?

Mr. Beswick

Will the right hon. Gentleman also take into account that, whatever short-term advantages there are, the long-term liabilities of this country in exporting capital to service the American capital invested here are also increased? Is he assuring the House that he is satisfied to see more than a majority of this large British industry, the motor car industry, passing into American control?

Sir D. Eccles

The House should not take it that it is more than half. My information is that at present, even with the Standard purchase, the proportion of the industry in British hands will still be more than half. However that may be, investment here by American companies on a reasonable scale has been a net benefit to the country.

Mr. Edelman

In view of the unsatisfactory nature of the reply, I beg to give notice that I will raise the matter on the Adjournment.