§ 1. Mr. Roy Hughesasked the Secretary of State for Trade and Industry what representations he has received from the Honda company concerning engine manufacture and full car production at its Swindon site; what reply he has sent; and if he will make a statement.
§ The Minister of State, Department of Trade and Industry (Mr. Norman Lamont)My Department holds discussions with Honda from time to time, as with any other potential inward investor in the United Kingdom. Such discussions are commercially confidential.
§ Mr. HughesWhat is the Minister doing to protect the interests of British Leyland, bearing in mind all the money that has been invested in that firm and all the jobs that are involved? If Honda is allowed to engage in car production, will the Minister ensure that there is a high level of local content? Will the Minister state whether Honda will be allowed to import built-up cars, as some other multinationals are doing? Finally, what is the Minister doing about the location? Why does he not persuade Honda to go to a development area, or has his bargaining power been undermined by the changes in regional aid?
§ Mr. LamontThe hon. Gentleman will have read in the newspapers that Honda has publicly stated that it has as yet no firm plans either for an engine making plant or full car production in the United Kingdom. If Honda or any other Japanese or foreign company were to think of investing in the United Kingdom and approached the Government about it, one of the facts that we would consider would be the effect that it would have on producers in the United Kingdom. That would also influence any decision about assistance towards a plant in a development area, or any of the assisted areas. We would certainly consider the effect on existing producers.
§ Mr. Roger KingWill my hon. Friend consider extremely carefully any proposal that may come from 316 companies, such as Honda, to produce vehicles in the United Kingdom, bearing in mind the over-capacity in the European manufacturing network, which is further exacerbated by the intention of Nissan to increase its output to 200,000 units a year, and the fact that any additional capacity must have a grave effect on the employment prospects in the existing motor industry?
§ Mr. LamontObviously, we would take into account what my hon. Friend says about capacity. That is what I meant when I replied to the hon. Member for Newport, East (Mr. Hughes) about the effect on existing producers. We would also consider the degree of United Kingdom content that was to be in any project, exactly as we did for the Nissan plant. I hope that hon. Members will not go overboard about the matter. If a company wishes to come to the United Kingdom, does not want a Government grant, is not going to an assisted area and wants to invest some of its own money in manufacturing capacity, we do not have the power to stop it coming. It might think it rather odd if we tried.
§ Mr. WilliamsThe Minister has just sought to reassure the House, but we, too, want to be sure that he will give adequate consideration to the needs and interests of existing car and component manufacturers in the United Kingdom. Will he bear in mind that as this matter comes so soon after the massive cut of £300 million a year in regional aid, it would be seen as a massive betrayal of the areas of highest unemployment if he used section 8 of the Industry Act 1972 to give comparable or better terms to such an employer to go outside assisted areas?
§ Mr. LamontWe have not been approached for assistance either inside or outside an assisted area, and so the question does not arise. If the question of aid did arise, as I have already said twice, we would take into account the effect on existing manufacturers. However, I must stress to the House that if a person wants to invest hundreds of millions of pounds of his own money in new manufacturing capacity in the United Kingdom, the decision is essentially for him, although obviously we shall take those factors into account.