HC Deb 28 June 1976 vol 914 cc12-3
10. Mr. Hal Miller

asked the Secretary of State for Industry what is his estimate of the effect on production and sale of British-made cars of the Chancellor's proposals to tax company cars.

Mr. Alan Williams

Our consultations are still continuing and we are considering the effects on the industry in the light of the representations received from it.

Mr. Miller

Will the Minister confirm, however, that company cars account for between 55 per cent. and 60 per cent. of British registrations and that about 85 per cent. of those are home-produced cars? Therefore, anything which affects this sector badly is likely to mean an increase in imports, which are at present mostly in the private sector.

Mr. Williams

The hon. Gentleman is right in assessing the magnitude of company sales concerning the motor industry. It is for this reason that we have been having meaningful and valuable consultations on the effect of any possible distortion that could be the outcome of going ahead with the scheme in precisely its present form. As the hon. Gentleman and the House are aware, the Treasury has given an assurance that will look at the scales and levels for individual cars and will consider reviewing these if it is necessary to do so.