§ 19. Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry what discussions he has had in Europe about import ceilings for Japanese cars after 1992.
§ Mr. LilleyI attended an informal meeting of Community Trade Ministers and the Commission in September, which discussed that matter. The Commission is proposing a transitional period of continuing restrictions lasting until the late 1990s. The United Kingdom continues to press for early liberalisation. We remain adamant that cars made in the EC by Japanese-owned companies must continue to be allowed unlimited free circulation throughout the Community. I believe that that has now been accepted by other member states and the Commission.
§ Mr. MitchellHas not the Minister got himself and the nation into a trap, because he has not been strong enough or tough enough to get full agreement to the exclusion of Japanese cars made in this country from the Japanese quotas? He is driven, as a result, to want an increase in the Japanese quota; rumour has it that he has been urging an increase from 11 per cent. to 29 per cent. If so, that would decimate jobs in the British motor industry. Why does not he beef himself up to get those cars included as British?
§ Mr. LilleyThe hon. Gentleman is mistaken. The voluntary restraint agreement 11 per cent. restriction is no longer being fully met simply because Japanese cars are now being produced domestically, so there is less need to import them than in the past. There is therefore no question of imports of Japanese cars being expected to rise to the figure that the hon. Gentleman stated. He is correct, however, to say that there is still opposition from the Italians and to a lesser extent from the French to reaching an agreement on that. He can always apply his own sanctions and abandon his Fiat motor car if he wants.