HC Deb 25 April 1977 vol 930 cc696-8
4. Miss Fookes

asked the Secretary of State for Industry which Japanese companies have indicated an interest in establishing colour television manufacturing in the United Kingdom; and what reply he has given.

Mr. Alan Williams

I know of only one Japanese company which is interested at the present time in setting up colour television manufacturing facilities in the United Kingdom. All such proposals are looked at by my Department from the point of view of the national interest. I should expect any new plant to provide employment in an assisted area to use United Kingdom-manufactured components to the maximum possible extent, to increase exports and to lead to a reduction of imports. The proposal is at present under consideration.

Miss Fookes

Would it not be simpler to refuse permission altogether and set at rest the fears of companies such as Rank Radio International in my constituency? Would it not be better to take a more robust line such as the Secretary of State for Trade took when trouncing Japan for discrimination against goods imported there?

Mr. Williams

The hon. Lady must recognise that it has been the policy of successive Governments in most circumstances to welcome inward investment in this country unless overriding national interests suggest that we should do otherwise. I am not aware that the Opposition have changed their position in relation to that.

So far as inward investment in this instance is concerned, I am sure the hon. Lady will appreciate that, in the context of the Common Market, it would be open to any firm considering locating here also to consider locating elsewhere. I have to consider whether to deny the opportunity of employment to people in assisted areas who will conceivably get jobs if this project goes ahead. Should the project to which I have referred be given approval, it will not be fully operational for two years, which is a different time scale from that concerning the people whom the hon. Lady represents.

Mr. Bryan Davies

While accepting the Minister's reassurance on certain points, may I ask whether he recognises the widespread concern that exists about the development of yet another manufacturing capacity when there is already suplus capacity in this country? If such manufacturing capacity is increased, will he look at the guarantees with regard to the supply of British-made components in the manufacture of television sets?

Mr. Williams

I appreciate the point that my hon. Friend is making. That is why I stressed in my initial reply that we would request such guarantees, and the level of component usage which I expect to be attained within three years will mean a higher rate of use of British components by the Japanese company than is normal in British firms opeating in the same area. Indeed, the firm for which the hon. Lady the Member for Plymouth, Drake (Miss Fookes) has expressed concern, like many British firms, uses imported tubes.

Mr. Alan Clark

Is the Minister aware that it is an industry in which the labour demands are contracting? Employment figures at Rank Radio have dropped from 3,750 to 2,200. Does the right hon. Gentleman agree that where a diminishing number of jobs is available it is preferable that they should be devoted to building British goods rather than be subjected to the vagaries of management of component supply which affect overseas firms?

Mr. Williams

As I have said, it is not quite as simple as that. The hon. Gentleman must bear in mind that any firm which could set up in this country could set up and present a competitive threat elsewhere in the Common Market. We have to ask ourselves, therefore, whether we deny ourselves the opportunity of a viable firm, with the latest technology in the industry, in order to keep other firms in existence which are already in trouble. I do not see that as the option, and it would be a couple of years before the firm could be fully operational. In that time we anticipate a considerable revival in the demand for sets.