Motor Industry (Hansard, 3 May 1960)

§ 35. Mr. Edelman
asked the President of the Board of Trade what estimate he has made of the effect of the new hire-purchase restrictions on motor car production; and to what extent the new restrictions will affect the facilities for expansion which he is providing for the motor industry.

§ Mr. Maudling
There is no reason to expect a check in the production of new cars, since to the extent to which sales in the home market fall off, it should be possible to sell more cars abroad. The facilities for the expansion of production, which my Department are providing, will not be affected in any way.

§ Mr. Edelman
Is it not the case that the right hon. Gentleman is here applying the brake and the accelerator simultaneously to the motor industry? Is it not also the case that before the credit squeeze was relaxed there was incipient unemployment in the motor industry? In view of that, is he not encouraging false hopes in the special areas where new facilities are being given?

§ Mr. Maudling
I do not think so at all. The registration of new motor cars during the first quarter of this year was about 50 per cent. up on the year before, and the export demand for motor cars is very strong indeed.

§ 36. Mr. Edelman
asked the President of the Board of Trade what ratio of production for export to production for the home market he has prescribed to the motor industry; and what action he has taken to ensure that the motor industry fulfils this requirement.

§ Mr. Maudling
No ratio is prescribed but motor manufacturers are well aware of the country's pressing need for exports and have maintained a fine record. I watch the figures closely and the industry's performance is regularly examined at the meetings of the National Advisory Council for the Motor Manufacturing Industry.

§ Mr. Edelman
If the right hon. Gentleman has watched the performance of the industry closely, has he not observed that between 1957 and 1959 the increase in production for the home market has gone up by 50 per cent., whereas the increase in production for the export market has gone up by less than 33⅓ per cent.? Is that not a disquieting tendency? In order to buffer the motor industry, ought he not to give a directive to motor car manufacturers to increase their efforts in the export market?

§ Mr. Maudling
I do not think that a directive of that kind would serve any purpose, because I think that the motor industry is doing a magnificent job already in the export market. Of the number of cars made in 1957, 49 per cent. were exported. In 1958, 46 per cent. were exported, and in 1959, 48 per cent. were exported. I think that our motor car manufacturers are keeping up a very good record of exports.

§ Mr. C. Osborne
Will my right hon. Friend not agree that the figures given by the hon. Member for Coventry, North (Mr. Edelman) in his supplementary question answer completely the complaints he made in his first Question, and it is the restriction which the Chancellor is now putting on home market purchases that will help to drive a greater proportion and greater output from the motor trade to the export market?

§ Mr. Maudling
It could be argued with much justice that if a higher proportion of the motor industry's output were diverted to exports that would lengthen delivery dates at home and could mean more imports of foreign cars. One must always bear that in mind.