Car Sales (Hansard, 23 July 1969)

§ 11. Mr. Luard
asked the President of the Board of Trade whether, in view of the decline in motor-car production for the home market which in May was 20 per cent. below the figures for May, 1968, he will now relax hire-purchase restrictions on car sales.

§ 48. Mr. Dudley Smith
asked the President of the Board of Trade, in view of the fact that the estimated sales by the motor industry on the home market this year is below a million vehicles for the first time since 1962, what steps he plans to take to help reverse this trend.

§ 80. Mr. Howie
asked the President of the Board of Trade whether, in view of the figures for motor-car production for the home market for May of this year which show a reduction on last year's figures, he will now reconsider the hire-purchase restrictions which are at present in operation.

§ Mr. Dell
No, Sir. Despite the losses of production earlier this year from strikes, total production of passenger cars for home and export during the first five months of 1969 was slightly greater than in the same period of 1968. I should add that there was one less week in 1968. It remains necessary to restrain home demand to make room for greater exports.

§ Mr. Luard
But is it not a fact that although, as my hon. Friend has said, total production was scarcely different from last year's production, on the home market it was 16 per cent. down on that in the corresponding period of last year, and would he not agree that this does create considerable difficulties for our motor manufacturers in being able to export at competitive prices because it raises their total overheads? Has he not received very stern representations from manufacturers for some easing of restrictions on the home market.

§ Mr. Dell
There have been representations, and I am, of course, aware of the difficulties this sort of policy causes, but, nevertheless, my hon. Friend will be aware that production of passenger cars for export in the first five months of this year were 12 per cent. more than in the first five months of last year, and it seems to me to be the right trend for a higher proportion of motor car manufactures to be exported.

§ Mr. Howie
Is my hon. Friend aware that many of us on this side of the House believe that this important industry leans rather unduly heavily on this particular argument, but that, nevertheless, it is of some importance, and would he assure us that he will bend his best efforts towards trying to get a return to the record car production not of 1968 but of a year or two ago?

§ Mr. Dell
I understand the importance of the argument. I understand the difficulties this causes, but, as my hon. Friend says, the main thing here is to achieve exports, and I hope that record production will be achieved as a result of record sales for export.