HC Deb 06 June 1967 vol 747 cc764-6
1. Sir G. Nabarro

asked the Minister of Technology what estimate he has made of motor car output for the United Kingdom market, and for exports in 1967, comparing total production with 1966 and 1965, respectively; the rate of reduction in output during 1967 compared with the two preceding years; and what steps he is taking to prevent further decline in output of motor cars.

30. Mr. Bitten

asked the Minister of Technology if he will make a statement on the prospective level of activity in the United Kingdom Motor Industry during 1967.

The Joint Parliamentary Secretary to the Ministry of Technology (Mr. Edmund Dell)

No firm forecasts of car output or exports are possible, but I expect total production in 1967 to be slightly lower than in 1966 and 1965. It is likely that the total value of the industry's exports in 1967 will be higher than in 1965 and at least as high as the record 1966 figures. Production prospects are being closely watched and ways of bringing about improvements will continue to be explored by the National Advisory Council for the Motor Manufacturing Industry, of which my right hon. Friend is Chairman.

Sir G. Nabarro

Is the hon. Gentleman aware that in 1966, compared with 1964, the output of the car industry of Britain declined by 14.1 per cent., and that in 1967 so far this industry is having the worst year since the slump year of 1929? Why are the hon. Gentleman and his Ministerial colleagues so complacent about this disastrous position?

Mr. Dell

I would not say that this is by any means the worst year. If hon. Gentlemen opposite look back at the record of this industry under previous Governments, including their own, they will observe that in 1961 compared with 1959 production and exports fell by about one-third. The important thing here is that the exports of this industry are being maintained, and I hope that they will be increased.

Mr. Biffen

Is not the hon. Gentleman ware of the dangerously low levels of profitability in this industry, and will he therefore give an undertaking that the Government's prices and incomes policy will not be used in such a way as to inhibit manufacturers from charging prices which they believe to be commercially prudent?

Mr. Dell

I am aware of the industry's record of profitability. As a matter of fact, increases in prices have been permitted to the industry. Nevertheless, the fact must be faced that the industry's record in many markets requires to be improved and I hope that it will devote itself to that object.

Mr. Francis Noel-Baker

Will my hon. Friend say what the Government are doing to help the motor industry to improve its lamentable export performance? We have been pushed out of export markets one after another. Throughout the Commonwealth and the United States our performance compares extremely badly with other major European exporters, including Volkswagen and Renault.

Mr. Dell

I am aware of the position in relation to the United States. That certainly warrants investigation. Nevertheless, I would not say that the record of the industry is lamentable. It is good, but it nevertheless requires to be improved as compared with that of our foreign competitors. As for what the Government are doing to help, we have introduced the export rebate, which has been of considerable assistance.

Mr. David Price

Does not the Minister agree that the time has been reached when it is necessary to give some modest boost to the home sales of motor cars?

Mr. Dell

As the hon. Member knows, representations have been made to the Government, which are under consideration.

6. Mr. J. H. Osborn

asked the Minister of Technology how many cars and vehicles were produced by the British motor industry in the first five months of 1967; how many of these have been exported; and how these figures differ from those for the identical period last year.

Mr. Dell

Production in May, 1967, is not yet known. In the first four months of 1967, 529,750 cars and 127,881 commercial vehicles were produced, of which 212,12 cars and 52,896 commercial vehicles were exported. These figures were, respectively, 13 per cent. 18 per cent. 5 per cent. and 9 per cent. less than in the corresponding period of 1966.

Mr. Osborn

Is not this a deplorable performance both for the manufacturers and the motor agents, who have to sell and who live by selling? Will the Government regard is as a matter of urgency to get some stimulation of the motor industry in this country? They are responsible for this. Will they do something about it?

Mr. Dell

The hon. Member should recognise that exports this year, by value, are being maintained, which is a good record in this situation, taking into account the difficulties which the motor industry is experiencing in various markets. Nevertheless, as I said earlier, it is clearly necessary that greater efforts should be devoted to exports. As the hon. Member knows, certain proposals have been put before British manufacturers in this regard and I hope that they will lead to some result.

Mr. Christopher Price

Can my hon. Friend give any sort of progress report on the "Little Neddy" for this industry, set up after so much pressure some time ago, which does not seem to have got down to doing anything yet?

Mr. Dell

We hope that the "Little Neddy" for this industry will come into action quite shortly.