HC Deb 13 March 1978 vol 946 cc14-7
11. Mr. Hal Miller

asked the Secretary of State for Trade whether the British Ambassador to Japan obtained satisfactory assurances from the Japanese Government about Japanese exports of motor vehicles to the United Kingdom in 1978.

18. Mr. Biffen

asked the Secretary of State for Trade what representations he has received requesting import controls on Japanese motor cars; and if he will make a statement.

25. Mr. Edwin Wainwright

asked the Secretary of State for Trade, in view of the number of cars imported to the United Kingdom during the past four years, including many Japanese, what representations he has received on action to safeguard the home market.

27. Mr. John Evans

asked the Secretary of State for Trade what recent representations he has had concerning the level of imports of cars from Japan.

30. Mr. Robinson

asked the Secretary of State for Trade if he will make a statement giving the details of the terms of any agreement reached with the Government of Japan for the limitation of imports into the United Kingdom of motor vehicles.

Mr. Meacher

I have received a number of representations from hon. Members and others about vehicle imports from Japan. The Japanese Government have clarified the Japanese industry's intentions for the present year in a letter, the text of which was reproduced in the Official Report on 7th March.

Mr. Miller

Are those arrangements due to Japan's super-competitive and rigged economy, or is the purpose to provide for British production supported by public investment? If the latter is the case, are there any arrangements made should British production not reach the hoped-for level and should other countries take Japan's share of the market?

Mr. Meacher

I think that the reason why the Japanese are so successful in their car exports is well understood. It is based on a high level of capital investment, the most modern equipment, very good labour relations and, by and large, I think, good management. All these are objectives which it is perfectly possible for other countries to meet, and in the transformation of British Leyland we certainly intend increasingly to bring those conditions about. Checks on the import of cars into Japan is a special problem pertaining to that country.

Mr. Biffen

Is the Minister aware that Datsun has provided an automatic Cherry model fitted with hand controls which is now being evaluated by the West Midlands Disabled Motorists' Club? Is he further aware that there are signs that this may prove to be an extremely valuable vehicle for disabled motorists? Can he therefore give an undertaking that in the implementation of voluntary import controls on cars no action will be taken to the disadvantage of this model should it prove advantageous for disabled motorists?

Mr. Meacher

This is the first time that that matter has been brought to my notice. We are most concerned to ensure that our objectives regarding the import of passenger cars from Japan are met, and I believe that the Japanese understand that very well. Even with the social purpose which the hon. Gentleman has in mind, I should be very concerned if those targets were to be breached. However, compatible with the maintenance of those targets, I shall seek to ensure that there is no restraint.

Mr. Hoyle

What has happened to the great sales drive for the Japanese to buy British components for their cars? It does not seem to have got off the ground. Does this not point to the need carefully to monitor the new agreement with the Japanese Government and take action if it is found that they are exceeding the agreed total of cars exported to this country?

Mr. Meacher

We are most concerned about the level of car component exports to Japan. We sell about £12 million worth of car components to Japan and about £1,000 million worth to the EEC, so it is not as though the British industry is not highly competitive. The British industry is also making a major drive through the British Export Marketing Centre in Tokyo and at the Tokyo Motor Show. We shall be monitoring all these matters to see whether there is any increase in these exports to Japan, and we shall be reviewing the situation closely with the Japanese.

Mr. Higgins

Why did not the Secretary of State make an oral statement to the House when this arrangement was first made and submit himself to questioning? Does the Under-Secretary of State agree that this latest arrangement is a restrictive practice, restricting imports in the same way as tariffs or any other barrier does, and must it not have a serious effect both on competition and on consumers? Does the hon. Gentleman agree that what this country needs is not more protectionism but more production?

Mr. Meacher

The purpose of Questions is for Ministers to submit themselves to questions from hon. Members—as they are now—on the activities of their Departments since the last date for Oral Questions. The very full answer which my right hon. Friend gave to the House is, I am sure, perfectly adequate.

As regards the level of imports, I suggest that the hon. Gentleman must make up his mind whether he wishes to see a prosperous and viable British motor vehicle industry, and, if he does, whether there are alternative measures to those which we have adopted to achieve that aim. Certainly we need a higher level of production, and there is evidence that British Leyland is substantially increasing its production. I think that that means not only better labour relations but also management increasing its production targets.

Mr. Wainwright

Does my hon. Friend agree that we must not allow imports of cars to destroy our home industry but this nevertheless depends on our competitive standards? What sort of investment is going into our motor car industry to bring it up to international standards, and what discussions is my hon. Friend having with the management and work force to ensure that we get the best out of what we now have?

Mr. Meacher

I am sure that my hon. Friend knows that my right hon. Friend the Secretary of State for Industry recently announced a further substantial injection of money into British Leyland. Under the new management, there are exhaustive discussions on the question of improved labour relations and the meeting of output targets.

Mr. Nott

At the heart of this problem does there not lie the fact that the British motor industry is not at present producing what the British consumer wishes to buy, and if, by means of self-restraint or other methods, there is a restriction on Japanese imports into Britain, we shall probably have more Italian and German imports which will fill the gap? Also, is it not a fact that the British motor vehicle component industry and commercial vehicle industry had a net surplus last year on the balance of payments of £1,300 million—a massive surplus—and ought we not to look to our successes in this area rather than our failures, being concerned that protectionist measures shall not damage what is, in global terms, a highly successful British industry?

Mr. Meacher

Again, I suggest that the hon. Gentleman must make up his mind whether it is Conservative Party policy to allow imports untrammelled and without restriction and to take into account the likely short-term consequences of that. As the hon. Gentleman knows, we received representations from British Leyland, under its new chairman, asking for restraint on Japanese imports, precisely because the increase in imports from the EEC, of which there is indeed a danger, cannot be stopped under the Treaty of Rome. We took what action could be taken to preserve the extra production for the British industry, and we intend to ensure that that extra production is forthcoming.

As regards the surplus in respect of motor car products, I am sure that the hon. Gentleman will have noted that, although we still have a surplus, it has been rapidly declining in recent years. Again, we have to ensure a successful base for our motor car production.