HC Deb 06 February 1978 vol 943 cc995-7
6. Mr. Hal Miller

asked the Secretary of State for Trade whether he has received a report from the Society of Motor Manufacturers and Traders on its latest talks with the Japanese automobile industry.

Mr. Dell

The main talks between the United Kingdom and Japanese motor industry associations open in Tokyo tomorrow. The Government attach importance to the achievement of a satisfactory outcome.

Mr. Miller

Is the Secretary of State aware that the Japanese motor car industry was unable to live up to its undertakings last year? In the event of that proving to be the case this year, will he indicate what action he is prepared to take to ensure that the limit is observed?

Mr. Dell

I am aware of the situation last year. Unfortunately, it was contributed to in substantial measure by the British motor car industry and its failure to produce sufficient cars during 1977. I do not propose at the moment, just before the negotiations in Tokyo take place, to issue threats of what action might be taken. I merely emphasise the importance of these talks being successful. I made that clear to Mr. Ushiba during his visit to London.

Mr. Madden

As we imported more cars from than we exported to the Common Market, does not my right hon. Friend believe that British motor car manufacturers need to talk to people other than the Japanese? This again demonstrates the problem of imports cancelling out exports.

Mr. Dell

The main duty of British motor car manufacturers, as of many other industries, is to produce good products and to sell them.

Mr. Ridsdale

Is it not encouraging that the Japanese motor car industry is obtaining British components, mainly from Lucas? Will the Secretary of State tell us about Mr. Ushiba's visit and his sincere efforts to assure the EEC that the Japanese wish to be good trading partners in the world community?

Mr. Dell

I am aware that the Japanese motor car industry is making some purchases of car components from this country. I very much welcome that trend, as I welcomed the visit last year of Japanese car manufacturers to investigate our components industry. But the figures are still very small and in no way compensate for the very large imports of motor cars into this country.

Mr. Ushiba indicated that Japanese companies intended substantially to reduce their multilateral surplus this year and we, on our part, indicated the importance of their so doing.

Mr. Skinner

Will my right hon. Friend confirm that, had the Tories' advice been taken regarding Meriden, the Japanese penetration of motor cycles would have been even greater? Will he also confirm that the Government did well not to take the advice of those civil servants and others who wanted to get rid of Meriden?

As regards Japanese import penetration across the whole range of car components, has not my right hon. Friend for about three years been telling us roughly what he has been saying this afternoon? Is not the truth that the Japanese are taking us for a ride?

Mr. Dell

The Government's position on Meriden is sufficiently well known without my re-emphasising it this afternoon.

As for being taken for a ride, the discussions take place between the British car manufacturing industry and the Japanese automobile manufacturers. There is little doubt that Japanese penetration into this country would have been greater than it is but for these agreements. I hope that there will be not merely an agreement with JAMA but that it will be adhered to and that British motor car manufacturers will produce more cars to sell in this country and overseas.