HC Deb 25 October 1960 vol 627 cc2124-6
5. Mr. Edelman

asked the Chancellor of the Exchequer what fiscal measures he is taking in order to assist the motor industry with its home sales pending a revival of export markets.

14. Mr. Rankin

asked the Chancellor of the Exchequer what approaches have been made to him by the motor-car industry for some alteration of hire-purchase restrictions.

Mr. Selwyn Lloyd

The President of the Board of Trade and I have arranged to meet representatives of the motor industry tomorrow, when we shall discuss these matters.

Mr. Edelman

I welcome the Chancellor's action, but may I ask whether he is aware that there is profound anxiety in Coventry because of the crisis in the industry which has resulted in one worker in seven being either unemployed, or on short time, or on strike against redundancy? Will he make a statement promptly on the question of Purchase Tax, otherwise the uncertainty will cause still further difficulties, and indeed unemployment, between now and the next budget?

Mr. Lloyd

I agree with the hon. Gentleman about the uncertainty. I think that all hon. Members are aware of the difficulties in the motor industry. They are not altogether due to circumstances under our control, but we will go into these matters tomorrow with the representatives.

Mr. Rankin

Is the right hon. and learned Gentleman aware that the motorcar industry is one of the chief weapons for helping to reduce unemployment in Scotland? How does he propose to employ more men in that industry in Scotland, when in England men are being dismissed from the industry because there is no work for them?

Mr. Lloyd

The important thing as regards the motor industry and the national interest is that its exports should be maintained at a high level, and we will talk about that matter tomorrow.

Mr. H. Wilson

Is the right hon. and learned Gentleman aware that the maintenance of full employment in many districts is dependent on the motor industry and its ancillary supplies? Will he do everything in his power to maintain reasonable stability and growth in that industry? Secondly, can he say whether the motor industry is showing any signs of having second thoughts about its big investment plans which affect a number of unemployment areas?

Mr. Lloyd

As regards the second part of the right hon. Gentleman's supplementary question, I am not aware of any such second thoughts, but I propose to have full discussions with my right hon. Friend the President of the Board of Trade and representatives of the motor industry tomorrow.

Mr. Rankin

Will the right hon. and learned Gentleman impress on the President of the Board of Trade the points that I have made, because no one has given us greater assurances than has his right hon. Friend about the future—the happy future according to him—that awaits the west of Scotland due to the incursion of the motor car industry?

Mr. Lloyd

I assure the hon. Gentleman that both the President of the Board of Trade and I are well aware of the importance to the national economy of the motor industry.