HC Deb 12 December 1977 vol 941 cc13-6
12. Mr. Hal Miller

asked the Secretary of State for Trade if imports of Japanese cars to date in the current year exceeded the voluntary limit imposed by the Japanese Automobile Manufacturers Association.

Mr. Meacher

The Japanese predicted no significant increase for the calendar year. There will be an increase, but exactly how much is not yet clear.

Mr. Miller

In view of the increase, can the Minister tell the House what powers he has to ensure that any limit for next year is observed, and can he give us an assurance that those powers will be used?

Mr. Meacher

My right hon. Friend has already made clear to the Japanese Ambassador our very serious concern about the trend in Japanese imports. In the light of the figures for the first 11 months—although there was a drop in October and November—we have made it clear to the Japanese Government that, in our view, this was a significant increase and that a more acceptable level of sales for the future is essential.

Our own industry is presently in discussion with the Japanese industry, and in deciding what to do—which is very much under consideration by the British Government at present—we shall look carefully at the December figures and Japanese forecasts for next year.

Mr. Litterick

Is my hon. Friend aware that the Japanese Ambassador recently wrote to me in somewhat indignant terms asserting that the Japanese Government do not apply restrictions on the importation of foreign-made motor cars to Japan? Will he tell the House whether he believes that?

Mr. Meacher

There are problems in regard to tariffs and non-tariff barriers for imports of foreign cars in Japan, but I believe that more serious than this is the custom and habit of the Japanese of buying, whenever possible, from their own industry. Getting a change in that is the most important thing.

Mr. Parkinson

Does the Minister agree that, unless and until our own motor industry starts to improve its performance, even if we are successful in limiting Japanese exports to this country, foreign cars from other countries will fill the void? The answer is for the British motor industry to perform better.

Mr. Meacher

It is true that the productivity and performance of the British car industry has been one of the main reasons for a substantial increase in imports. However, the main thrust of the increase in imports comes not from Japan but from the EEC. Our own problems are partly a result of industrial disputes, but they must also be a result of marking down our targeted output, because there is no other way of explaining the fact that in 1973 we built 1.9 million cars and this year so far only 1.3 million.

16. Mr. Forman

asked the Secretary of State for Trade if he will make a further statement on the ways in which the Government intend to counter unfair competition from Japan, especially in the electronic components industry.

Mr. Meacher

The EEC Commission is already investigating an allegation that quartz crystals from Japan are being dumped in the Community. If a United Kingdom industry has evidence that other electronic components are being dumped it should approach my Department's antidumping unit, which will be able to advise it on the presentation of its case to the EEC Commission.

Mr. Forman

Will the hon. Gentleman also undertake to publish in the Official Report the detailed criteria used by the Government when they try to establish whether dumping is taking place? Why will not the hon. Gentleman's Department make available to interested parties in British industry the data on which such decisions are made?

Mr. Meacher

In the past we have consistently made available the basis on which we made our judgment. Since 1st July this year anti-dumping powers have been transferred to Brussels, but both the EEC's anti-dumping code and our previous code were based on the same authority, namely, the GATT anti-dumping code. Therefore, there is a close comparison between the two codes. If the hon. Gentleman knows of any industry that does not know the facts, perhaps he will approach us.

Mr. Lipton

Is my hon. Friend aware that it is possible to bring Japanese money into this country and that the Japanese are willing to provide employment in this country by establishing a television factory in the North of England which would enable them to increase British exports of Japanese sets to other countries? Does my hon. Friend agree that we should all benefit by such a step?

Mr. Meacher

That is a matter, as my hon. Friend knows, for my right hon. Friend the Secretary of State for Industry. I believe that the Minister of State has made clear his views on that matter.

Mr. Higgins

Does the Minister have any evidence that Japanese cars are being dumped on the United Kingdom market?

Mr. Meacher

If evidence is available to suggest that, it should be brought to our attention by our own industries. So far they have not done so.

Mr. Hoyle

Does my hon. Friend agree that the establishment of the proposed Japanese television factory in the North would have had disastrous consequences on employment in the components sector and on indigenous industry?

Mr. Meacher

Certainly. The strength of the United Kingdom electronics industry as a result of this inward investment had it occurred was one of the central factors which would have had to be taken into account by the Government in balancing the considerations.