HC Deb 27 November 1968 vol 774 cc481-2
10. Sir G. Nabarro

asked the Minister of Technology what estimate he has made of the effect on motor car sales, respectively in export and home markets, of the hire-purchase restrictions announced on 1st November, 1968.

The Parliamentary Secretary to the Ministry of Technology (Mr. Gerry Fowler)

The estimated effect of this measure is that home market demand in the next twelve months will be reduced by about 5 per cent. below the level which would otherwise have been achieved. The measure does not affect exports directly, but indirectly I believe exports will benefit from this reduced home demand on manufacturers.

Sir G. Nabarro

As the Question was tabled before the Chancellor's package last Friday, has the Parliamentary Secretary taken into account that the 5 per cent. diminution of home sales arising from severer hire purchase restrictions is now made worse by the increase in Purchase Tax, and what evidence is there that by making motor cars dearer on the home market we shall sell more motor cars in overseas markets? Stop whispering; let the hon. Gentleman answer the question!

Mr. Fowler

Despite the measures of last Friday, which I would expect to reduce home demand by up to a further 3 per cent. next year, my expectation is still that home demand next year will be at least at the level of home demand this year.

Mr. Gwilym Roberts

Would my hon. Friend like to comment on the statement supposed to have been made by some of the executives of Vauxhall Motors Limited that the Purchase Tax changes caused the abolition of the night shift at the Luton factory?

Mr. Fowler

I am not in a position to answer for the executives of Vauxhall Motors Limited, but it seems to me highly unlikely that this could be the explanation for the abolition of night shift working at this stage.

Mr. David Price

Will the hon. Gentleman say what steps the Government are taking to consider alternative economic regulators on the demand side of the supply and demand equation that do not hit the motor industry, which is a mass production industry, and also investment in it quite as severely as do the economic regulators in respect of hire purchase, Purchase Tax and the like?

Mr. Fowler

We are always willing to consider any alternative scheme that may be suggested, but, in essence, this is a matter for the Chancellor, and I suggest that the hon. Gentleman should address his question to him.