HC Deb 08 November 1982 vol 31 cc297-8
7. Mr. Leighton

asked the Minister for Trade what is the balance of trade between the United Kingdom and the rest of the European Economic Community in (a) motor vehicles and (b) steel over the last 12 months.

Mr. Peter Rees

In the year from September 1981 to August 1982, the United Kingdom's crude deficit of trade with the rest of the Community was £2,024 million on motor vehicles and £461 million on steel.

Mr. Leighton

Is not the Minister at fault with these figures, which show a gross imbalance of trade with the EEC to our disadvantage? That must cause the loss of hundreds of thousands of jobs in the United Kingdom. Do the Government regard it as essential that our motor industry be secured and maintained? If so, will the hon. and learned Gentleman seek to negotiate some sort of balance in our trade with the EEC, as we do with Japan, regardless of the technicalities of the Treaty of Rome?

Mr. Rees

Although the Government are concerned about the health and prosperity of the motor industry, I should prefer the House to look at the problem in its true perspective. Total exports to the rest of the European Community from the United Kingdom are about £22 billion a year. In 1981 our total trade with the European Community showed a surplus of almost £800 million. I suggest that the Labour Party's well publicised plan to withdraw from the European Community must affect jobs and the prosperity of the United Kingdom.

Mr. John H. Osborn

Has my hon. and learned Friend managed to make an analysis of the problems facing the products of Sheffield? In car components, drop stampings and springs, there is severe competition. Certain alloy steels, high-speed steel and stainless steel have a very high import penetration, much of it from the EEC. Will my hon. and learned Friend look at that picture, too?

Mr. Rees

My hon. Friend will be reassured to hear that there is to be a report from the European Commission this month on the import penetration of the special steels market. We shall consider what is appropriate in the light of that report.

Dr. Bray

Is the Minister aware that his Department becomes responsible in January for the inspection of imports to see that they conform with the Davignon conditions in respect of prices? Can he assure the House that adequate staff will be provided and that they will work at least as vigorously as the inspectors in any other country in Europe?

Mr. Rees

I gladly give that assurance.

Mr. Teddy Taylor

Does it not worry my hon. and learned Friend that, at a time when we in Britain have been slashing our steel industry, closing down steelworks and are now thinking of closing down more, on the Continent, where they have the same agreement in operation, in some cases they have been expanding their steel industry, against all the rules of the agreement? Is there not at least a case for putting some restraint on the increasing volume of imports from the EEC when there is ample evidence that the rules on price as well as on structure are being broken?

Mr. Rees

Production quotas inside the Community are essentially a matter for my right hon. Friend the Secretary of State for Industry. However, I can tell my hon. Friend that production quotas, price rules and policing inside the Community are matters of importance and concern to us. He may be reassured to know that the Commission's inspectorate has recently been trebled.