HC Deb 12 March 1979 vol 964 cc9-11
6. Mr. Dykes

asked the Secretary of State for Trade what are the prospects for an improvement in 1979 in the trend of United Kingdom exports of motor vehicles and motor vehicle equipment.

The Under-Secretary of State for Trade (Mr. Michael Meacher)

The Society of Motor Manufacturers and Traders forecasts that in 1979 the number of cars produced for export will increase by 5 per cent. to 520,000, and the number of commercial vehicles by 9 per cent. to 185,000. Forecasts for motor vehicle equipment are not available.

Mr. Dykes

I thank the Minister for those figures. Can he explain the reasons behind the contrast in recent times between the relative success of vehicle equipment and accessories exported and the disappointing performance of motor vehicle exports? Does he think that the situation will be better this year? Secondly, in view of the shocking press which the motor vehicle industry has had in foreign newspapers recently over industrial unrest, and so on, is the Minister now satisfied that on delivery dates, keeping to specification and quality control, our reputation overseas will be better this year?

Mr. Meacher

I should certainly like to give the hon. Gentleman a full assurance on all those counts. He will recognise that this is a complex matter. There are extremely detailed consultations and procedures, in particular between the Department of Industry and the four production companies in this country. But I am confident that the latest forecasts represent a significant upturn and a considerable improvement on 1978, which I agree was a disappointing year.

Mr. Marten

Does the Under Secretary of State recall an answer which he gave a few months ago to the hon. Lady the Member for Coventry, South-West (Mrs. Wise) about trade with the EEC in passenger motor vehicles, in respect of which in 1970 there was a crude surplus of £5.4 million and in 1977 there was a crude deficit of £750 million? Does the hon. Gentleman have the 1978 figures?

Mr. Meacher

I do not have the 1978 figures, though I take the point which the hon. Gentleman makes. I am concerned about the high level of tied imports from the EEC by the American multinationals in this country, which last year, I think, accounted for 11 per cent. to 12 per cent. of all our imports. I hope that all of them, and Ford in particular, will increase their production of cars in this country rather than in the EEC.

Sir Anthony Meyer

Will the Under-Secretary explain to my hon. Friend the Member for Banbury (Mr. Marten), and to hon. Members on his own side who would like to turn the EEC into a free trade area, by exactly what mechanism that would enable the British balance of trade in motor vehicles to be dramatically improved?

Mr. Meacher

My understanding is that the European Economic Community is already a free trade area. The real issue is whether that works to our advantage or disadvantage in the medium term.