HC Deb 14 November 1967 vol 754 cc198-200
12. Sir G. Nabarro

asked the Minister of Technology what decline in motor car production has occurred in the first 10 months of 1967 compared with 1966 and 1965; and what unfilled capacity in the motor industry has occurred this year.

Mr. Benn

In the first nine months of 1967, motor car production fell by about 11 per cent. compared with 1965 and by about 10 per cent. compared with 1966. Figures of production in October 1967 are not yet available. It is not possible to say to what extent the industry's capacity has fallen below full utilisation this year.

Sir G. Nabarro

Would not the right hon. Gentleman add that in the first nine months of this year exports of British motor cars fell from 442,000 to 418,000, a drop of 5 per cent.? As the object of the squeeze is to increase exports, how does he reconcile these unsavoury facts with future prospects?

Mr. Benn

The hon. Member knows very well that the consequences of the July measures last year were not very helpful for the motor car industry, but if he looks at the figure for value of exports in 1967 in the industry he will not be too disappointed.

Mr. William Price

Would my right hon. Friend care to comment on the fact that the motor industry is now very confident? Can he tell us what is likely to happen, not in the last ten months, but in the next ten months?

Mr. Benn

That is the subject of the next Question.

13. Sir G. Nabarro

asked the Minister of Technology what estimate he has made of increased motor car output in 1968 and improved ultilisation of present spare capacity.

Mr. Benn

I expect car output in 1968 to be significantly higher than this year and capacity utilisation to improve as a result.

Sir G. Nabarro

While welcoming this improvement on behalf of my Midland constituents, may I ask whether the right hon. Gentleman can go any further and say whether he expects to reverse the trend of falling volume of motor car exports which has been evident throughout this year? Does he expect motor car exports to rise next year both ad valorem and in volume?

Mr. Benn

It is very nice to be blessed by the hon. Gentleman in his opening remark, but I think it would be wrong and unwise to hazard an exact forecast next year. The industry is itself optimistic about its output. There are some other circumstances involving American safety regulations, which will be known to the hon. Gentleman, but all in all I am hoping that 1968 will be a good year for the motor industry.

Mr. David Price

Could the right hon. Gentleman say, after the vague but fair reply on the substantive question, does this suggest that the Government have gone away from very detailed forecasts, as they did, for instance, from the National Plan, which forecast in detail the output of the motor car industry up to 1970?

Mr. Benn

I think that if the hon. Gentleman looks through the Questions which have been addressed to my Department over the last year and a half, since I have been the Minister, he will see that we have never been drawn into specific forecasts for the industry, because unless they are based on reasonably accurate assumptions they really only tend to mislead the House.