HC Deb 13 November 1972 vol 846 cc20-1
16. Mr. Edelman

asked the Secretary of State for Trade and Industry whether his attention has been drawn to the practice of a major machine tool firm, details of which have been sent to him, of licensing sub-contractors to build machine tools in India which are then shipped back to the United Kingdom for resale by the parent company: and what action he proposes to take.

The Secretary of State for Trade and Industry and President of the Board of Trade (Mr. Peter Walker)

I am aware of this long-standing licensing arrangement which is of benefit to the company concerned and results in a net addition of work for the people of Coventry.

Mr. Edelman

Is the Minister aware of the intense resentment felt by machine tool workers at the deplorable practice by which wages at home are undercut and Coventry workers are deprived of work? Will he intervene to end this practice, which has extended to Spain as well as India?

Mr. Walker

I am given to understand that Coventry benefits from the licensing arrangement as a result of the large volume of spare parts which go to the Indian company. The machines are imported in such numbers that it would not be economic to produce them here.

Mr. Leslie Huckfield

Does the right hon. Gentleman care at all about the machine tool industry? Does he not realise that we are here concerned with one of the most important machine tool manufacturing plants in the country? Does he understand that his Department, which gives grant to the machine tool industry, does not even know how much of the grant goes on imported machine tools? Will he do something about this matter?

Mr. Walker

I care very much about the industry, but to cancel this licensing arrangement or to urge the company to do so would result in a net loss of work to Coventry, which would be a mistake. The machines could not be produced in this country in sufficient quantities to make them economic.

Mr. Benn

As the imported machines which come to this country under this arrangement qualify for Government grant, does the right hon. Gentleman recognise that to the workers involved this looks like a subsidy to the export of jobs? This is a very serious problem. We have seen it in the textile and electronics industries, and we now fear that it may be moving into the metal machinery industry.

Mr. Walker

I am well aware that it could look like that, but I hope that my answer, which makes it clear that Coventry benefits from this licensing arrangement and that the imported machine would not be produced in this country because—[Interruption.] This is the advice which I am given. I can only seek the advice of the company concerned. I shall always act in what I consider to be the interests of the machine tool industry.

Mr. Edelman

On a point of order. In view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter on the Adjournment.

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