HC Deb 29 January 1979 vol 961 cc1022-5
19. Mr. Edwin Wainwright

asked the Secretary of State for Trade how many cars and goods vehicles, respectively, were imported during each of the past five years; what percentage of the total vehicles sold in the United Kingdom this represents; and how many were from other countries outside the EEC.

Mr. Meacher

With permission, I will circulate this information in the Official Report.

Mr. Wainwright

Does my hon. Friend agree that far too many cars are being imported into this country? What does he propose to do to take some action against cars coming in? Is he quite satisfied that cars are not coming in through unfair competition? Will he tell his right hon. Friend that it is time that he did some work inside the Cabinet and got the Cabinet to agree with the CBI and the TUC to send out a statement to the managerial side and the workmen of Britain to the effect that unless we produce better and a greater number of cars than we have done in the past, and at the right price, we shall lose many more jobs in this industry?

Mr. Meacher

My right hon. Friend has certainly been extremely active in the Cabinet in general discussions on this matter. The Government have made clear their position. Certainly I agree with my hon. Friend that the number of cars being imported is far too high. I am thoroughly dissatisfied by the fact that there was an increase in the level of import penetration from 45 per cent. to 49 per cent. last year.

As regards what can be done about it, two-thirds of all imported cars come from the EEC, and about that we can do nothing in terms of direct import restraints.

As regards imports from Japan, for some time now there has been an understanding between the Japanese industry and the British industry, and I am glad to say that last year the Japanese honoured their commitment not to send more cars into this country in 1978 than they did in 1977.

On the third part of the supplementary question, I agree that the performance of the British car industry leaves a lot to be desired.

Mr. Costain

Does not the Minister agree that to get these figures in proper perspective one needs to see the proportion of British components in those cars? Does not he agree that these stupid and unnecessary strikes are stopping those components from being exported? Will some member of the Cabinet have the guts to tell the strikers that they will lose the markets once and for all?

Mr. Meacher

Of course, industrial disputes are damaging both to production and to exports. But I suggest that the hon. Gentleman is being far too facile if he automatically assumes that those who go on strike are necessarily the cause of that strike.

Mr. MacFarquhar

With reference to my hon. Friend's remark about the Japanese restraint agreement, does not he agree that a far better method of reducing the number of Japanese cars coming into this country would be, through the EEC Commission, to bring pressure upon France and Italy, which seem to have some means of restricting the entry of Japanese cars to their markets and thus increasing pressure upon ours?

Mr. Meacher

My hon. Friend has a fair point. I believe that the Italians have an agreement which restrains Japanese car imports which predates the accession of Japan to the GATT, which, under the grandfather clause, enables it to continue to prevail. In the case of the French, I think that the import penetration level is about 2 per cent. or 3 per cent. compared with our 11 per cent., and that is, indeed, one of the mysteries. I wish that we could roll back the clock in Britain to that position.

Mr. Nott

If it is not those who go on strike who cause a strike, who is it? Is it the Government, or is it employers who are refusing to break the Government's guidelines and increase pay? Will the Under-Secretary say whose fault it is that a strike occurs, if it is not the fault of those who actually go on strike?

Mr. Meacher

The hon. Gentleman is not making a very profound point. He knows perfectly well that strikes are a very complex matter and that their causes run very deep. They are certainly, in almost every case, wholly the fault of neither one side nor the other. Management, in many cases, bears its due proportion of the blame.

Following is the information:

IMPORTS AND NEW REGISTRATIONS OF CARS AND GOODS VEHICLES
TABLE 1—UNITED KINGDOM IMPORTS OF VEHICLES, 1974–78
Thousands
Cars Goods vehicles
Total Countries outside EEC Total Countries outside EEC
1974 378 129 40 8
1975 452 173 26 7
1976 538 176 27 8
1977 702 216 37 11
1978 807 259 47 21
TABLE 2—NEW CAR REGISTRATIONS IN THE UNITED KINGDOM, 1974–78
Total Imported
Thousands Thousands Percentage of total
1974 1,269 354 28
1975 1,194 397 33
1976 1,286 488 38
1977 1,324 601 45
1978 1,592 785 49
TABLE 3—NEW GOODS VEHICLE REGISTRATIONS IN THE UNITED KINGDOM, 1974–78
Total Imported
Thousands Thousands Percentage of total
1974 237 33 14
1975 220 25 11
1976 209 30 14
1977 225 37 16
1978 256 56 22

Sources: Overseas Trade Statistics (Table 1); Society of Motor Manufacturers and Traders (Table 2 and 3).

Note: Owing to differences in timing and in definition, it would be misleading to compare the number of vehicles imported (published in Overseas Trade Statistics) directly with the number registered (published by the Society of Motor Manufacturers and Traders). The tables above show (a) the number of vehicles imported and (b) new registrations of imported vehicles compared with total new registrations in the United Kingdom.