HC Deb 19 January 1970 vol 794 cc12-3
16. Mr. Blaker

asked the Minister of Technology what representations he has received from the Motor Agents Association about the effects of the Government's policies on the motor industry; and what reply he has given.

The Minister of Technology (Mr. Anthony Wedgwood Bean)

Representatives of the Association met my right hon. Friend the Paymaster-General and me on 15th October last year and asked for a relaxation of the hire-purchase restrictions on the sale of used cars. After careful consideration of their arguments we felt unable to agree to their request. Since then my right hon. Friend has had three further letters from the Association.

Mr. Blaker

Is the right hon. Gentleman aware that sales of motor vehicles in 1969 fell significantly compared with the previous year and that this situation, if continued, is likely to be damaging to efficiency and exports? Will the right hon. Gentleman represent to his right hon. Friend that if there is to be some relaxation of Government restrictions on this industry it might be wise to have some modest relaxation now when demand is slack rather than wait till after the Budget?

Mr. Benn

I can assure the hon. Gentleman that I am in very close contact with the industry and with my right hon. Friend the Chancellor of the Exchequer, and that the arguments he has put forward are very well understood. But the policy adopted has to have some regard to the general economic framework of policy, and undoubtedly one of the benefits that will accrue from our stronger economic position is a greater degree of security in the industry in the future.

Mr. Howie

Referring to the general economic situation, may I ask my right hon. Friend whether he is aware that the Chairman of Vauxhall Motors has given an undertaking similar to that given by Lord Stokes just before Christmas, namely, that his firm would continue to keep up its record export levels were a relaxation in the home market now permitted? Will my right hon. Friend bear that in mind when discussing the matter with his right hon. Friend?

Mr. Benn

One of the most welcome aspects of the whole story has been that as a result of very close contact between the industry and the Government, the industry has expressed through its principal spokesmen an understanding of the need for exports and has done very well in this respect.

Sir K. Joseph

Will the right hon. Gentleman represent to the Chancellor of the Exchequer that if any concession is deferred till the Budget the public may equally well defer their purchases till then and plunge the industry into worse trouble on the home market?

Mr. Benn

If it were necessary for me to refer passages in HANSARD to the Chancellor I should be happy to do so, but I am sure that he will notice them.