HC Deb 25 October 1971 vol 823 cc1223-4
32. Sir. G. Nabarro

asked the Secretary of State for Trade and Industry what improvement has occurred in the motor industry, export and domestic markets, respectively, since the financial measures initiated by Her Majesty's Government in July.

Mr. John Davies

The July measures were designed to stimulate domestic demand. In August and September taken together, home car registrations were some 36 per cent. above the corresponding figure for last year, compared with an increase of 6 per cent. in the period January to July. August car exports were nearly 10 per cent. up on August 1970.

Sir G. Nabarro

While welcoming all those very satisfactory figures and the bullish atmosphere which the Minister creates by stating them this afternoon, has he not observed the paradox that, though the motor industry is evidently expanding, unemployment is consistently rising in all the principal motor manufacturing areas? In Birmingham, on Merseyside and in Central Scotland unemployment is rising while the demand for motor cars goes up. Will the Minister explain this to us?

Mr. Davies

It is common ground that a rise in consumption gives effect to an increase in manufacture only with some time lag. In fact, at the outset of any boom in consumption the first element to be drawn on is existing stocks. Therefore, the repercussion of such an improvement of consumption in terms of unemployment is normally delayed. I have frequently made reference to this matter, and I am sure that my hon. Friend is aware of the situation.

Mr. Edelman

In order to maintain the improvement which the right hon. Gentleman has mentioned, will he intervene to stop the provocative and damaging lockouts which are taking place in Coventry in answer to the legitimate protests of the engineering workers against the multilateral denunciation by the employers of the Coventry tool room agreement?

Mr. Davies

I am well aware of the views of hon. Gentlemen opposite on the decision by the Government about intervention in individual industrial relations discussions. The hon. Gentleman knows that the Government do not favour such intervention and will not actively participate in it.