HC Deb 24 April 1978 vol 948 cc981-3
6. Mr. Rooker

asked the Secretary of State for Trade what are the import and export figures for motor vehicles to date for 1978.

Mr. Meacher

In the period January to March 1978 155,000 motor vehicles valued at £367 million fob were exported, and 218,000 valued at £491 million cif were imported.

Mr. Rooker

Since the Ford Motor Company is the largest importer of motor cars into this country, why is the Department of Trade not giving the same attention to that company as it is to Japanese companies?

Mr. Meacher

Altogether 70 per cent. of our car imports come from the EEC. A large proportion of these is accounted for by tied imports by the multinationals, of which Ford is the most important. Tied imports last year rose from 7 per cent. to 12 per cent. of our total market. At the same time, it is easier for United States multinationals in Britain to switch from Continental sourcing to United Kingdom production as United Kingdom production increases if they, rather than foreign companies, are doing the importing into Britain.

Mr. Hal Miller

Does the Minister agree that, whereas Ford was the largest importer recently, it has also been the largest exporter? Is it therefore no coincidence that it is also the most successful company? Is that not what trade is all about?

Mr. Meacher

Certainly, but I do not think that one can make a straight comparison between imports and exports. We expect a multinational that establishes plant in Britain not to have substantial imports, but certainly we welcome growing exports.

Mr. R. C. Mitchell

Is my hon. Friend aware that thousands more British cars could be sold in Europe if those cars were available? Is he further aware that customers there, as in Britain, are not prepared to wait three to six months to obtain delivery?

Mr. Meacher

There is a problem about United Kingdom supply, particularly as regards last year. Partly as a result of industrial disputes and partly as a result of the marking down of production targets by management, we did not produce enough cars that people wanted to buy in this country. I am glad to say, however, that, particularly as a result of changes at British Leyland, this situation looks set to change.

Mr. Nott

What does the Minister mean when he says that he does not expect a company that manufactures here to import? Surely if we want multinational investment in this country at all we must accept that this is the basis on which companies undertake their operations throughout the world. Is it not the fact that Ford's agricultural equipment, which is a massive business for this country, is manufactured in three European countries but that this is greatly to the benefit of this country?

Mr. Meacher

The hon. Gentleman should be a little more concerned about United Kingdom national interests and less about the interest of foreign multinationals.