HC Deb 18 May 1981 vol 5 cc4-6
6. Mr. Beaumont-Dark

asked the Secretary of State for Industry if he will make a statement on the progress made by BL in increasing market share of various models.

17. Mr. Heddle

asked the Secretary of State for Industry if he plans to have any discussions with the chairman of BL to discuss the progress of the BL model range.

Mr. Tebbit

BL's market performance this year has been encouraging. Over the first four months of the year BL's domestic market share exceeded 20 per cent.—a notable improvement over the same period last year. Metro sales have exceeded expectation, taking about 9 per cent. of the United Kingdom market this year up to end-April. The development and launch of further new models to build on this improved performance is progressing well. Progress with these and other models, as well as BL's general performance, is covered in the discussions I hold from time to time with Sir Michael Edwardes.

Mr. Beaumont-Dark

I welcome the Minister's reply on how BL is helping itself. However, does he agree that the problems of the British motor car industry—which are the same as in Europe—are so intense that if we allow the Japanese and the East Europeans to go on penetrating the market as they are now, within 10 years we may have precious little motor car industry left? Will he follow the American example and get for Britain what the Americans have got for the American car industry?

Mr. Tebbit

I hope that we shall not get for the British market what the Americans have got for theirs, because they have about 25 per cent. penetration by Japanese motor cars. By agreement between ourselves and the Japanese industry, we are restricting their penetration to 10 per cent. to 12 per cent. So long as that agreement holds—I hope that it will—it is up to the British industry to reorganise itself to meet and eliminate that competition.

Mr. Heddle

Does my hon. Friend agree that, as long as the unhappy events of last week are allowed to continue, BL is likely to become a one-car company? Does he further agree that BL should do all that it can between now and 1984 to expand its range so that it can compete fairly and equally with competition from abroad and that, in so doing, it should incorporate as many common components as possible and so breathe some fresh air into the components industry on which the West Midlands depend?

Mr. Tebbit

I think that I largely agree with my hon. Friend. Because we believe that BL has a chance to develop its new models, we have not only authorised the LC10 series to go ahead, but have recently authorised BL to go ahead with the new Jaguar XJ40 series, which I hope will be on the market in about 1984.

Mr. Les Huckfield

Does the Minister of State accept that there is great fear throughout the West Midlands that the Mini Metro will soon be the only substantial model that BL will be making? Does he further accept that what is affecting BL at the larger end of its range—particularly Rover and Jaguar—is the Government's policy, particularly the strength of the pound, and the recent increase of 20p a gallon on petrol?

Mr. Tebbit

The loss of output due to the strike a week ago has done far more damage to BL than 20p a gallon on petrol.

Mr. Alan Clark

Does my hon. Friend accept that, in relation to the enormous sums of public money which have been devoted to BL, these figures are not at all impressive? Were normal accounting procedures to be applied to the corporation, would not the Mini Metro have to sell for about £6,000 to give the taxpayer a reasonable return? Does he further accept that there is a limit to the extent to which many Conservative Members can tolerate the continuing subsidy of a giant and incompetently managed job creation scheme while jobs in the defence industries—notably in shipbuilding and weapons procurement—are threatened by insatiable demands?

Mr. Tebbit

I am sure that all workers in British Shipbuilders will be glad to hear the words uttered by my hon. Friend in his stalwart defence of that company's competitiveness but my hon. Friend should recollect that Sir Michael Edwardes has given undertakings on the action that he would take if it became clear that the plan could not be carried through to success. Indeed, his actions last week underlined his determination to ensure that the plan does succeed, even if it requires tough decisions.