HC Deb 02 December 1969 vol 792 cc1269-70
7. Mr. Gwilym Roberts

asked the Chancellor of the Exchequer if, in view of the sharp fall-off in the home market for cars and the imbalance thus created in this export industry, he will now assist home sales by regulations to reduce the initial hire-purchase deposit for cars and to relaxing in general the hire-purchase conditions; and if he will make a statement.

Mr. Roy Jenkins

I have nothing to add to my right hon. Friend, the Chief Secretary's reply to the hon. Member for Oswestry (Mr. Biffen) on 25th November, 1969. All these matters are kept under continual review, but it would be premature to relax restrictions at this time.—[Vol. 792, c. 193–4.]

Mr. Roberts

Would not my right hon. Friend accept that unless something is done soon there will be considerable short-time working and unemployment in this industry, which may even affect the resources available to develop new models? Would he not accept that it is high time that Treasury policy was used to counteract the seasonal cycle in the home market for cars?

Mr. Jenkins

No, Sir. I think that to act at the present moment would probably be to exaggerate rather than counteract, since one is moving fairly rapidly into the period in which there will, if normal conditions follow, be a seasonal upswing.

Sir G. Nabarro

Notwithstanding the splendid export performances in motor cars and commercial vehicles during the last 12 months, will not the Chancellor of the Exchequer accept the views of the whole motor trade today that it will be nearly impossible to increase further export performance at today's prices unless sales on the home market can be increased?

Mr. Jenkins

There are a long-term and a short-term problem. Clearly, the longer-term problem affects levels of investment in the industry, which is of importance. On the shorter-term problem I would not accept without critical judgment the views of those in the motor trade who naturally have a close interest in this matter, as I understand, but it has to be borne in mind that in five of the past seven months the seasonally adjusted figure for registrations at home has been higher than in the similar period of 1968.