HC Deb 26 April 1976 vol 910 cc19-21
19. Mr. Hal Miller

asked the Secretary of State for Trade whether he will have further talks with the Japanese Government and motor industry in the light of the number of Japanese cars registered in the United Kingdom in the first quarter of 1976 ; and if he will make a statement on imports of Japanese cars.

Mr. Dell

I have at present no plans for talks with Japanese Ministers. But the British motor industry is already in contact with its Japanese counterparts about current levels of car imports front Japan, and is also in close touch with my Department.

Mr. Miller

Is the right hon. Gentleman aware that that answer will hardly reassure people engaged in the motor car industry? Is he also aware that Japanese imports are now running at a level of over one-quarter of total imports and represent a figure of over one-third of the cars registered in this country? Will he reconsider his attitude to the question of possible import controls?

Mr. Dell

This is a serious matter. I have already met the Japanese Ambassador to discuss trade between our two countries, and in the course of our discussions we considered the question of cars. Discussions are taking place between the SMMT and the Japanese Association. I hope that this will result in understandings regarding the level of imports from Japan. I prefer this matter to be dealt with voluntarily if that is possible.

Mr. Raphael Tuck

We have heard a lot about possible retaliation which might take place if we impose import controls. Since heavy restrictions have been placed on British goods entering Japan, what pos sible retaliation could we expect from Japan if we imposed import controls on Japanese cars? While my right hon. Friend is about it, will he try to persuade Members of Parliament in this country to buy British cars?

Mr. Dell

I am sure that hon. Members will have taken note of the last point my hon. Friend has made. This is not just a case of restraints on Japanese imports. It has been pointed out that there was a fall in the percentage of Japanese imports in the first three months of 1976. Unfortunately, it was not the United Kingdom industry that took prime advantage of that. Instead there was an increase in imports from elsewhere. It is of the greatest importance that British industry becomes sufficiently competitive to take advantage of any voluntary restraints that exist.

Mr. Pardoe

Will the right hon. Gentleman make it clear to those involved in this country's motor industry that rather than belly-ache about Japanese imports they ought to look carefully at the way the Japanese have been able to take over the motor car markets of Africa and South America, areas where, 20 years ago, we had a complete monopoly?

Mr. Dell

It is important that we should have an understanding with the Japanese motor car industry. Nevertheless, it is of the greatest importance that the British car industry improves its performance.

Mr. Skinner

Does my right hon. Friend agree that, while it is acknowledged that import controls are no panacea for resolving all the current economic ills facing us, the fact is that in 1975 the ratio of cars coming into this country from Japan as against those going from this country to Japan was about 25:1? Even if that ratio were reduced to 10:1, how on earth could the Japanese become involved in retaliation when they would still be so much in surplus?

Mr. Dell

I am glad that my hon. Friend agrees that import controls are not a panacea for all situations. I expressed my concern about the level of British car exports to Japan to the Japanese ambassador. I am sure that he took note of that.

Mr. Shersby

In addition to talking to the Japanese ambassador, will the right hon. Gentleman talk to the Russian and Polish ambassadors about the dumping of the Russian motor car, the Lada, and the Polish Polski-Fiat? Does he realise that the Polski-Fiat sells in this country for £1,400, which is virtually the price of a new 850 Mini?

Mr. Dell

I am ready to receive any applications from the industry in respect of dumping from these sources. The matter will be examined as rapidly as possible.