HC Deb 12 February 1986 vol 91 cc942-3
5. Mr. McWilliam

asked the Secretary of State for Trade and Industry when he next intends to attend the National Economic Development Council; and what matters will be discussed.

Mr. Channon

On 5 March. The agenda for the meeting has not yet been agreed.

Mr. McWilliam

Does the right hon. Gentleman intend discussing the motor industry in general and British Leyland in particular at the meeting?

Mr. Channon

It is not for me to set the agenda. That is a matter for the National Economic Development Organisation.

Mr. Hickmet

Will my right hon. Friend take the opportunity at the meeting to discuss with the NEDC the predatory pricing policies of the Japanese, and especially the use of regional grants, and so on, by the Department of Trade and Industry to enable factories such as the Tokyo Electric Co. which has been undercutting W and T. Avery in the supply of electronic scales, to capture British markets and put 500 people out of work? Should not that issue be addressed by my right hon. Friend at the meeting?

Mr. Channon

My hon. Friend raises a serious issue which deserves discussion. I think that both sides of the House have warmly welcomed inward investment in general. People are anxious to have increased inward investment, although, clearly, not at the expense of the jobs of others.

Mr. Wrigglesworth

As the new Secretary of State for Trade and Industry, will the right hon. Gentleman make it clear when he attends the NEDC meeting that he believes it is essential for the economy that we have a growing, thriving and successful manufacturing sector? Is he aware that that sector has experienced a steady decline since the Conservatives came to office? Is the right hon. Gentleman aware that there is a need for major efforts to be made to ensure that the manufacturing sector makes to the economy the contribution that it must?

Mr. Channon

Perhaps the hon. Gentleman did not hear what I said a few moments ago. I gave the figures for manufacturing output and manufacturing exports. I do not accept the hon. Gentleman's point. We need a thriving manufacturing sector and a thriving services sector. The hon. Gentleman does not do manufacturing a service when he denigrates what has been achieved in the past few years.

Mr. Kenneth Carlisle

Will my right hon. Friend discuss with the NEDC the fall of some 7 per cent. in the cost of raw materials and fuel in the past year? Should that not lead through to lower prices of manufactured goods and increase our ability to compete?

Mr. Channon

I very much hope that that is the case. My hon. Friend has put his finger on an important point.

Mr. Bermingham

Will the right hon. Gentleman also take the opportunity to discuss what steps can be taken to oppose and restrict the European method of energy subsidisation in industrial products, as the British glass industry has suffered as a result of extremely unfair competition from Europe?

Mr. Channon

That matter has been raised often with my right hon. Friend the Secretary of State for Energy. I shall not set the agenda for the meeting with the NEDC next week, but the House has made some interesting suggestions.

Mr. John Mark Taylor

When my hon. Friend has these meetings, will he canvass the possibility of floating Land Rover on the Birmingham stock exchange and give us a chance?

Mr. Channon

What I certainly think should be done, and what I am determined to work towards, with, I am sure, my hon. Friend, is the best future for Land Rover, for those who work in it and for the company's long-term future.

Mr. John Smith

If the Secretary of State discusses the British motor vehicle industry with the NEDC, will he explain to it and the House why the Government have clearly rejected the option of standing four square behind British Leyland, Leyland Bus and Land Rover to preserve an independent British capability?

Mr. Channon

As usual, the right hon. and learned Gentleman is overstating the case. The House knows very well that the Government have poured £1.2 billion into Leyland over the years, with guarantees of more than £1.8 billion still available. We should now work together for a viable car industry. That is in the general interest.

Mr. Wilson

Has the Secretary of State noticed that, as part of the merger mania, a series of major attacks have been made on Scottish companies such as DCL and Coats Patons? Will he undertake to discuss with the NEDC the development of the Scottish regional economy so that we retain the greatest possible indigenous control of our industry?

Mr. Channon

The regional economy of Scotland is no doubt a suitable subject for the NEDC. I do not believe that individual takeovers are an appropriate subject, however, although I shall no doubt get advice in due course from the Director General of Fair Trading about the companies to which the hon. Gentleman refers.