HC Deb 03 August 1961 vol 645 cc1619-21
6. Mr. Chapman

asked the President of the Board of Trade how many motor cars were exported in the first six months of 1961; how this total compares with the same period in 1960; in which overseas markets this decline has mainly occurred; and what estimate he has made of the prospects for improvement in the second half of this year.

Mr. Maudling

175,306 new cars were exported during the first six months of 1961 compared with 342,415 during the same period last year. The main markets in which a decline occurred were the U.S.A. and Canada and South Africa. While there may be some improvement, exports in the second half of this year are likely to remain well below the record levels achieved in the first half of 1960.

Mr. Chapman

Are not these figures very alarming and is not this something like the worst situation which we have had for about eight years in exports? Is not the Chancellor's action, whatever we think about it, bound to make matters worse in terms of employment in the Midlands? As it points to a very dangerous employment, short time and even redundancy situation in the Midlands in the latter part of the year, would the right hon. Gentleman agree to calling an emergency conference with the motor car manufacturers so that a sudden new crisis does not hit the Midlands without warning later this year?

Mr. Maudling

I agree that these are disappointing figures but there are special reasons for them, particularly in the United States. I have very close contact with both sides of industry through the National Advisory Council, which is carrying out a special study of the export problem. What the figures bring out clearly is that the employment and prosperity of the motor industry very much depends upon its export achievements.

Mr. Cleaver

Is the President of the Board of Trade aware that the important factor is to get down the cost of cars and if we cannot get a maximum throughput into our highly mechanised factories we cannot do that? Is he aware that if the taxation of the motor industry goes up any further we shall not have the home demand to justify the heavy capital expenditure involved in plant?

Mr. Maudling

That is a rather wide question, and although I do not entirely accept what my hon. Friend said, I recognise the strength of his argument.

Mr. Lee

In view of the disappointing figures, can the President of the Board of Trade say whether the proposed extensions of the industry are going ahead at the pace previously proposed?

Mr. Maudling

I have no reason to suppose that they are not.