HC Deb 17 April 1972 vol 835 cc6-11
7. Mr. Ashley

asked the Secretary of State for Trade and Industry to what extent the investment programme of the British ball-bearing industry has been restricted by the incursion of Japanese competition in this field, according to information tendered to him.

Mr. John Davies

No examples have been quoted to me of investment plans which have been inhibited by competition from Japan, but the industry has told me that it may have to limit investment in the future unless the rate of growth of imports from Japan is curtailed.

Mr. Ashley

Is the right hon. Gentleman aware that that is a grave answer which has serious implications for our ball-bearing industry, on which many other industries depend? Does he realise that imports of Japanese ball bearings have increased by 500 per cent. since 1967 and that they doubled last year? What steps does he propose to take to protect our ball-bearing industry and those employed in it?

Mr. Davies

As the hon. Gentleman, I think, knows, the Federation concerned has been to talk to the Department and has asked us to institute certain measures which lie within our power in this sphere. These require the assembly of a considerable amount of information. This is being assembled. Only after this information has been got together will it be possible to see whether the kind of measures envisaged can be taken. I have the matter under very serious and urgent consideration.

8. Mr. Tomney

asked the Secretary of State for Trade and Industry what in formation he has received from industry concerning the piracy of design and catalogue numbers by Japanese manufacturers engaged in the ball and roller-bearing industry and exporting to the United Kingdom.

Mr. John Davies

None, Sir.

Mr. Tomney

I will give the right hon. Gentleman the information. Is he aware that the importation of ball bearings into America has resulted in the complete shutdown of American domestic production and that that is likely to happen here? Is he aware that I hold in my hand a component part of a motor car which is stamped with the country of origin, Japan, with the manufacturer's name and with the catalogue number by which it is manufactured in Britain? Is he aware that this sort of unbridled and unfair competition is resulting in problems affecting a vital part of British engineering and that unless something is done quickly——

Mr. Speaker

Order. I have every sympathy with the hon. Gentleman, but I remind him that this is Question time.

Mr. Davies

I will answer the hon. Gentleman's implied question. He asked whether I had certain information. I do not have information of the kind he refers to. On the other hand, the industry has its own rights in the matter and can and should raise with the courts any action which it considers to be a breach of its copyrights or patents. Whether catalogue numbers constitute a protection of industrial property is matter for the courts to decide.

Mr. Tomney

Is the right hon. Gentleman aware that this is bound to lead to large-scale unemployment in the industry, which is being strangled by this kind of competition?

Mr. Davies

Again answering the hon. Gentleman's implied question, I assure him, as I assured his hon. Friend the Member for Stoke-on-Trent, South (Mr. Ashley) on the last Question, that I have the matter under very urgent consideration. At the same time, it is for the industry concerned to take in the courts any action it considers to be necessary.

12. Mr. English

asked the Secretary of State for Trade and Industry which of the powers currently exercisable by Her Majesty's Government to inhibit the import of foreign ball bearings will cease to be so exercisable, or to be exercisable only in accordance with the law of the European Communities, after 1st January, 1973.

Mr. John Davies

Broadly speaking, we shall retain our present powers during the transitional period, but will exercise them only in conformity with our Community obligations.

Mr. English

Perhaps I may first point out, Mr. Speaker, that Question No. 1 for Written Answer, which deals with import restrictions on ball bearings made outside EEC and EFTA countries, was supposed to be for Oral Answer, and was intended to be the pair to Question No. 12.

Is the Secretary of State seriously saying that he will be able to retain his present powers? Does he have that in writing? If so, can he give the reference to it in the Agreements with the European Community?

Mr. Davies

The hon. Member can remain secure in the belief that in the Community arrangements existing provisions which members had at the time when Community requirements came into force have been preserved in this field, and this will be our case, too.

Mr. Arthur Lewis

Can the Minister give a definite assurance that after the transitional period he and the Government will be enabled, as now, to fix quotas and import duties irrespective of any discussion with or reference to the E.E.C. whenever he or his Government wish so to do?

Mr. Davies

No. I am sure that the hon. Gentleman well realises from his very intensive attendance at the debates taking place on the matter that those arrangements certainly do not exist.

13. Mr. Bob Brown

asked the Secretary of State for Trade and Industry what further facts he has received from the United Kingdom ball-bearing industry about the effects of Japanese competition; and if he will make a statement.

Mr. John Davies

On 18th January a deputation from the ball and roller bearing industry asked the Government to approach the Japanese Government with a view to securing a voluntary limitation of growth of sales of Japanese bearings in this country. The case put by the industry, together with the further confidential information which manufacturers provided at the Department's request, is under consideration, and I hope shortly to let the industry know the Government's views.

Mr. Brown

I am grateful for the information which the right hon. Gentleman supplied, but he must be desperately concerned that the type of bearing which my hon. Friend the Member for Ham- mersmith, North (Mr. Tomney) held up a moment or two ago is entering the country at about 50 per cent, of the price of the equivalent bearing supplied by British manufacturers. Does not the Minister realise that we are faced with redundancies here on a four-figure scale, and that it is high time that the Government stopped considering and took action?

Mr. Davies

As the hon. Member knows full well, taking some action in cases like this involves the assembly of a very great deal of specific information. The industry has been helpful in putting forward a lot of information to enable the Government to take steps. The hon. Member need have no fear that if the information confirms the position he outlines, action will be taken.

14. Mr. James Johnson

asked the Secretary of State for Trade and Industry what recent consultations he has had with the Confederation of British Industry regarding imports of Japqanese ball bearings; and what action he is taking in consequence.

Mr. John Davies

The CBI is aware of the discussions which have taken place between the Department and representatives of The Ball and Roller Bearing Manufacturers' Association.

Mr. Johnson

The CBI may be aware, but I wonder whether the Minister is aware of the anxieties of the trade unions in the matter? Is the right hon. Gentleman aware that a first-class firm in Luton put off nearly 900 men last year and is faced with further unemployment in the coming year if Japanese competition goes on? The right hon. Gentleman says that he is collecting information, but how much information does he need before he takes action?

Mr. Davies

As the hon. Member knows, in order to take action either in respect of anti-dumping or under the trade agreement with Japan we have to be satisfied, first, that there is manifest damage expected to the industry of the country and, secondly, that there is an effective dumping procedure in force. In so far as anti-dumping procedures are required, these are very complex things to prove, but I am seeking to acquire the necessary information. which is not, I assure the hon. Gentleman, readily or easily forthcoming.

Mr. Adam Butler

The case has been made out for the ball-bearing industry, but I am sure that my right hon. Friend is very well aware of the representations made by the textile industry over a much longer period.