HC Deb 22 March 1982 vol 20 cc671-2
4. Mr. Hal Miller

asked the Secretary of State for Industry whether the remaining issues referred to in his answer of 22 February, Official Report, c. 586, on the Nissan-Datsun project have yet been agreed; and if he will make a statement.

The Minister of State, Department of Industry (Mr. Norman Lamont)

As my right hon. Friend said on 22 February, further discussions between my Department and the company took place in London last month. Some progress was made, but there remain some issues to be agreed. The final decision of the board of Nissan will also depend upon the identification of a suitable site and a successful outcome to discussions which it is intended should take place with the relevant trade unions.

Mr. Miller

Does my hon. Friend agree that the imbalance of trade between Japan and the EEC is a matter of considerable moment, and that it is urgent for the Japanese to make a substantial investment in this country to offset it? Are my hon. Friend and the Government doing everything possible to impress on the company those considerations and the fact that a further long delay in the decision might well prejudice the conditions so far established?

Mr. Lamont

Overseas investment is one way in which the trade imbalance between this country and Japan can be rectified. I understand my hon. Friend's anxiety that the negotiations with Nissan should not be further prolonged, but it is an extremely important project for the company and it naturally wishes to research it thoroughly. I hope that it will not be too long before a final decision is taken.

Mr. Orme

Will the Minister confirm that the disagreement with Nissan is about the British content of the component input? What level has his Department set?

Mr. Lamont

I do not believe that I should disclose to the House our negotiations with the Japanese company. It has been said before that local content is one matter that we are discussing. We attach great importance to having a high level of local content.

Mr. Wrigglesworth

Is the Minister aware that considerable time, money and effort have been expended by places, such as Teesside, in putting forward cases for having the plant in their areas and that the uncertainty caused by the delay is doing great damage? Will he urge the company to take a speedy decision and to end the delay, which has gone on for much longer than I believe any of us expected?

Mr. Lamont

I am sorry that Teesside, which has spent money and time on the matter, should find the situation aggravated by the delay. It is an extremely important decision. The Nissan motor company must be allowed to make up its own mind in principle first. I do not believe that decisions on site will be taken until we get further in the more general talks.

Mr. Kenneth Carlisle

Further to what my hon. Friend the Member for Bromsgrove and Redditch (Mr. Miller) said, is my hon. Friend certain that the Japanese understand the growing political opposition in Britain to the flood of imports from Japan? Is he aware that, unless they do, there is simply no way in which they will be allowed to import into this country? Does he agree that we must make certain that they have no doubt at all that, unless they invest, imports from Japan will be stopped?

Mr. Lamont

The Japanese are under no illusion about the strength of feeling on the subject. We have taken the opportunity to emphasise it to them. That is one of the main reasons why the Japanese are interested in investing in this country.

Mr. Dormand

I recognise what the Minister has said about the component factor, but is he prepared to say whether a major sticking point is the amount of financial assistance forthcoming from the Government to Nissan?

Mr. Lamont

I cannot go beyond what I have said about the stage that the negotiations have reached. To do so would not be compatible with carrying on our discussions with the Japanese.