§ 11. Sir G. Nabarroasked the Minister of Technology in view of the decline in output of motor-cars for home sales in the half-year ended 30th June, 1969, whether he will make a statement on the prospects for production and employment in the motor industry during the remainder of 1969.
§ 16. Mr. Biffenasked the Minister of Technology what is the estimated production of passenger cars for home and export markets, respectively, for the year to date; what percentage change these figures show over the corresponding period for 1968; and if he will make a statement on the expected levels of demand during the remainder of this year.
§ Mr. FowlerTotal production in the 22 weeks to 31st May, 1969 was 778,232, comprising 403,462 for the home market and 374,770 for export. The weekly average production rate, compared with the 21 weeks to 25th May, 1968, was 1341 4 per cent. lower in total, the decline being largely attributable to losses caused by industrial disputes and a 12½ per cent. fall in home market production being partly offset by a 7 per cent. rise in export production. Total production in 1969 is expected to be about 5½ per cent. below the level achieved in 1968. No significant change in employment in the industry is expected in the second half of 1969.
§ Sir G. NabarroDoes the Minister know that motor car production for the home market is now at the lowest level since 1962 and is running at a rate of less than 1 million vehicles for the home market per annum, notwithstanding that export sales for the first time in our history are exceeding home sales? How does he expect export price competitiveness to be maintained if he goes on denigrating the home market?
§ Mr. FowlerI was not aware that I had ever denigrated anything. The hon. Member's question might just as well have been phrased, "Is the Minister aware that export production is now running at record levels?" We have at last achieved the switch of resources into exporting which many Governments have sought to achieve.
§ Mr. BiffenIs the hon. Gentleman aware that one of the great advantages of the present policy dictated by the Chicago school concerning money supply is that one can do without the peripheral controls like the existing hire-purchase controls? Will he therefore recommend to his colleagues in the Treasury that as some token of concern over the decline in the home market motor car trades' sales they should scrap hire-purchase controls?
§ Mr. FowlerI am in constant touch with the industry; so is my right hon. Friend. We watch the position very closely. Questions on hire-purchase controls must be addressed to my right hon. Friend the Chancellor of the Exchequer.
§ Mr. Roy HughesShould not the British motor industry, like its German competitors, make even greater efforts to concentrate in the export field; for, despite the argument about unit costs, concentration in the home market leads to a complacent attitude?
§ Mr. FowlerI have been delighted to see the export successes of the British motor industry since November, 1967; and I congratulate the industry on these. What is notable is that in many markets the industry has now secured a sufficient volume of sales to make export sales much more profitable, because the overheads of maintenance and sales organisations in those countries are spread more widely.
§ Mr. David PriceI am sure that the whole House is delighted with the success of the industry in the export field, but does the Joint Parliamentary Secretary agree or disagree with the opinion of the "Little Neddy" on the motor industry that a large, stable home market is an important factor in maintaining both profitability and international competitiveness?
§ Mr. FowlerNone of us doubts that the motor industry requires a large and stable home market, but what we would want to argue about, and where there is not complete agreement, is how large is large and what is the degree of stability required.