HC Deb 15 March 1989 vol 149 cc408-10
17. Mr. Allen

To ask the Chancellor of the Duchy of Lancaster what he is doing to encourage exports from the cycle industry in the east midlands.

Mr. Atkins

My hon. Friend the Minister for Trade announced the launch of the export initiative on 17 January. Services provided under the initiative are available at all sectors of industry including those engaged in the production of cycles.

My officials in the east midlands regional office of the Department are available to provide advice and assistance to all east midlands firms with an interest in exporting.

Mr. Allen

The Secretary of State and the Minister will be aware that one of his predecessors, the right hon. Member for Chingford (Mr. Tebbit), said, in one of his more cynical moods, that the unemployed youngsters in Britain should get on their bikes. Is it not ironic that the companies which produced those British bikes have lost thousands of jobs, many of them in my constituency? Will he make serious representations to the Chancellor of the Exchequer to ensure that interest rates are brought down to a manageable level and that the inflation rate is reduced considerably so that the exports of those cycles can increase and more people can get on their bikes and work in the cycle factories?

Mr. Atkins

I am tempted to suggest that this is a cyclical problem, but the House may not appreciate that. The hon. Gentleman makes a point about interest rates to which we have already devoted some time this afternoon. If a rise in interest rates will solve the problem of inflation we would prefer that policy to increased inflation. As the hon. Gentleman may recall, although he was not here at the time, the Labour Government forced inflation up to levels that we had to reduce when we came to office.

In regard to the cycle industry, the hon. Gentleman will have heard my answer to my hon. Friend the Member for Nottingham, South (Mr. Brandon-Bravo) in whose constituency the Raleigh factory is situated and who never ceases to make representations to me about the interests of his constituents at Raleigh. None the less, my reply applies just as much to the hon. Gentleman. Jobs are increasing in Raleigh in Nottingham because of the achievements of the bicycle company, and we want that to continue.