HC Deb 12 March 1979 vol 964 cc23-5
19. Mr. Hal Miller

asked the Secretary of State for Trade what are the shares of United Kingdom passenger and commercial vehicle registrations taken by imports in January and February of the current year as compared with the same two months in 1978, and with 1978 as a whole.

Mr. Meacher

Imports accounted for 52.3 per cent. of new car registrations in February compared with 47.6 per cent. in February last year and 49.3 per cent. in 1978 as a whole. For new commercial vehicle registrations, imports accounted for 18.7 per cent. in February. This compared with 21.6 per cent. in February last year and 21.4 per cent. in 1978 as a whole. I shall give the remaining information requested in the Official Report.

Mr. Miller

I thank the Minister for those figures. Does he agree that those increased imports show that there is now one effective European car and vehicle market? Will he therefore enter into discussions with his Common Market colleagues to discuss the future pattern of trade in those vehicles?

Mr. Meacher

For many years, there has been a free trade area within the Community, which applies to the motor vehicle industry in the wider sense as it does to other products. I do not think that there needs to be discussion at governmental level. We must make sure that our own companies take full advantage of the opportunities that are offered and that we get a benefit in terms of international specialisation within this wider market.

Mr. Cryer

Does not my hon. Friend agree that over the past few years the import penetration of cars and commercial vehicles indicates that we need to regulate our international trade in manufacturing products over a much wider range, in the same way that we regulated our textile affairs through the multi-fibre arrangement? Will it not be necessary to extend that sort of quota coverage to retain some manufacturing development and ability in this country? Does not that mean that we must take a strong stand on this matter within the Common Market?

Mr. Meacher

As my hon. Friend is well aware, in textiles the multi-fibre arrangement consists of about 30 bilateral arrangements between the EEC and low cost producers that are mainly in South East Asia. As for car production, he will be aware that about 70 per cent. of our imports come from the EEC. That is a completely different matter. As he knows, what he is suggesting is completely outwith the Treaty of Rome.

Mr. Nott

Apart from the Treaty of Rome, is it not the case—

Mr. Cryer

How can we ignore it?

Mr. Nott

—that we have an enormous surplus in motor car components? Can we expect other countries to continue buying our motor car components as at present and in increasing quantities if we talk about placing import restrictions on motor vehicles from other countries?

Mr. Meacher

The hon. Gentleman is right to say that the motor vehicle industry has a substantial surplus in its balance of trade. However, my hon. Friend would point out—I do so on his behalf—that the surplus has decreased from £900 million in 1975–76 to £400 million last year. That is a substantial drop, and it means that we must have a strategy that will not only hold the present position but restore our former position.

Following is the information:

NEW CAR REGISTRATIONS
1979 percent
January 53.9
February 52.3
1978
January 50.0
February 47.6
1978 (year) 49.3
NEW COMMERCIAL VEHICLE REGISTRATIONS
1979
January 21.0
February 18.7
1978
January 18.0
February 21.6
1978 (year) 21.4

These figures are published by the Society of Motor Manufacturers and Traders.