HC Deb 21 February 1983 vol 37 cc650-1
6. Mr. Huckfield

asked the Minister for Trade whether, in order that assemble-only operations shawl not take place, he will now introduce legislation requiring a minimum domestic content for imported motor vehicles sold in the United Kingdom, either based on numbers of units sold, or with provision that such units must have specific United Kingdom manufactured components or parts.

Mr. Peter Rees

No, Sir. Such legislation would not be in the long-term interests of the United Kingdom.

Mr. Huckfield

Does the hon. and learned Gentleman accept that the recent decision of British Leyland to import Rover gear boxes from France merely epitomises the problem that now faces all motor car assemblers in this country in that they are increasingly importing engineering and other advanced components? Does the Minister further accept that at least 31 countries already have some minimum domestic content legislative requirement and that there may soon be similar legislation in the United States? Is he aware that if we do not have similar provisions we shall not have a motor vehicle industry for much longer?

Mr. Rees

The hon. Gentleman is wrong to refer to the Ottinger legislation in the United States, which would be extremely damaging to the free flow of world trade. It is a matter on which we have made representations. The hon. Gentleman overlooks the successful export record of British automotive manufacturers. It is true that some motor car manufacturers in this country are importing a considerable number of components from abroad. However, it is a two-way flow. I am sure that British motor manufacturers are capable of judging their best commercial interests.

Mr. Stokes

Is my hon. and learned Friend aware that the British components industry is unfortunately in some difficulty and that it should be more competitive in both quality and price? Is this a matter for the industry alone, or is there any way in which the Government can help?

Mr. Rees

My hon. Friend draws attention to the difficulties. He will recognise, as I am sure the whole House will, that the industry has a good export record. I do not believe that it would assist the industry, this country's economy, or the consumer, if legislation of the kind suggested by the hon. Member for Nuneaton (Mr. Huckfield) were introduced.

Mr. Cryer

Is the hon. and learned Gentleman aware that the Government seem to do little to prevent the decimation of British manufacturing industry and are not prepared to introduce legislation of the kind requested? Does this not contrast strangely with the Government's view of farming, where Ministers are prepared to control imports of UHT milk to protect British farmers? Do not the Government believe that domestic manufacturing industry is worth some regulation of trade, or are they prepared to see the whole thing go out of the window?

Mr. Rees

The hon. Gentleman overlooks voluntary restraint arrangements that offer a measure of temporary protection, particularly in respect of automobiles of Japanese manufacture. The import of UHT milk is a matter for my right hon. Friend the Minister of Agriculture, Fisheries and Food.

Mr. Hal Miller

As there is unlikely to be time for legislation before a final decision is taken on the Nissan project, will the Minister do his part to see that any requirement on component content in that project is based on direct manufacturing costs, not on ex-works price?

Mr. Rees

My right hon. Friend the Secretary of State for Industry has made it clear that we welcome the possibility of investment by Nissan in this country. We would be even more enthusiastic if Nissan gave some assurance about local content. The point put by my hon. Friend is well made.