HC Deb 20 January 1970 vol 794 cc242-3
23. Mr. Christopher Price

asked the Chancellor of the Exchequer what studies his Department has made about the relation between home sales and export performance in the motor manufacturing industry; and if he will publish such studies.

Mr. Roy Jenkins

A confidential study was carried out by Government officials and representatives of the industry in 1966–67. The recent Report of the Motor Manufacturing E.D.C., which also considers this question, will be published shortly.

Mr. Price

Is my right hon. Friend aware that many of us on this side of the House do not accept the proposition that one helps exports by squeezing the home market? Is he aware that much of the motor manufacturing industry in the West Midlands still works below capacity and could export even more if some stimulation were now given to a home market that has greatly declined?

Mr. Jenkins

I am aware of the whole balance of considerations here. As my hon. Friend will be aware, I have just as close a constituency interest in the matter as he does, if not closer. I very much doubt whether we should have achieved the substantial increase in motor exports achieved in 1968 and 1969 had we allowed the home market to run absolutely free during that time.

Mr. Edelman

Will my right hon. Friend bear in mind that the decline in domestic output is leading to a decline in the earnings of workers, and that that is contributing to industrial unrest in the motor industry? Will he consult his right hon. Friend the Secretary of State for Employment and Productivity before coming to a conclusion about whether he should ease restrictions on the output of motor cars for the domestic market?

Mr. Jenkins

I will bear all these factors in mind.