HC Deb 26 January 1961 vol 633 cc326-7
28. Mr. Edelman

asked the President of the Board of Trade whether, in order to increase trade and promote exports. he will invite the British motor manufacturers to combine in the manufacture of a standardised popular car in a single model, comparable with the Volkswagen

Mr. Maudling

No, Sir.

Mr. Edelman

But is it not the case that the continuing strength of the Volkswagen in the world's markets arises not from any superiority in German workmanship but from principles of production which, this year. will result in a million standardised cars being produced? Will the President of the Board of Trade not just brush aside new ideas about the industry, but put the idea to the Motor Advisory Council which he himself consults?

Mr. Maudling

I do not think that this is a new idea. I am not sure that the success of the Volkswagen is necessarily attributable to the scale of its production alone. I think that the firm's salesmanship and after-sales service have been remarkable. There certainly are people who argue that in this industry one can quite early reach the limit of the economies of scale production. But these are essentially matters that should be left to the industry itself and to its commercial judgment.

Mr. Gresham Cooke

Would my right hon. Friend bear in mind that some manufacturers have large expansion plans that will come to fruition in a year or two, for the development and production of new and what are hoped to be popular models, and that it would be extremely difficult to impose on top of this another new factory to make another model?

Mr. Maudling

This question of standardisation and diversity is very difficult, but I do not think that we should forget the very large degree of standardisation of components in the British industry, which is an important development.

38. Mr. Edelman

asked the President of the Board of Trade what advice he has given to the motor industry in connection with a future readjustment of the industry's labour force.

Mr. Maudling

None, Sir.

Mr. Edelman

Did the President of the Board of Trade, during a recent meeting with the motor manufacturers, propose to them that a proportion of the existing labour force of the motor industry should be made redundant and, if possible, diverted to other industries? If he did, how would that square with his present intention to expand the motor industry and create new jobs in other areas?

Mr. Maudling

I certainly did not make any such proposal. It is true, of course, that there is a considerable shortage of labour in the Midlands in many branches of the engineering industry, but, so far as I am concerned, I hope that the motor industry will employ all the labour it needs and no more than the labour it needs. It is, of course, for the industry and not for me to say how many that should be.