HC Deb 10 February 1993 vol 218 cc976-7
14. Mr. Batiste

To ask the Secretary of State for Foreign and Commonwealth Affairs when he will next meet his Japanese opposite number to discuss bilateral relations.

Mr. Hurd

I hope to visit Japan in early April and I am in touch with the Japanese Government about that. I welcome the opportunity that that will give me to discuss with the Japanese Foreign Minister our relations with Japan and the whole range of international issues affecting our two countries. We shall also meet at the economic summit in Tokyo in July.

Mr. Batiste

My right hon. Friend's visit will be most timely, as about 200 Japanese companies are now manufacturing in the United Kingdom, directly providing 50,000 jobs, contributing extensively to our balance of trade and reinforcing our manufacturing base. Will my right hon. Friend reassure the Japanese that this Government—unlike the Opposition—remain committed to the policies that have, over the past 10 years, made the United Kingdom the most popular and sensible location for high-quality inward investment in the European Community?

Mr. Hurd

My hon. Friend is entirely right. We have 41 per cent. of Japanese investment in the European Community—partly because we fought hard and successfully to secure free circulation within the single market of products manufactured in the United Kingdom by companies owned in Japan. Japanese companies also bring to this country important research and development. More than 30 of the Japanese firms that my hon. Friend mentioned have research and development units here.

Mr. Skinner

Why does not the Foreign Secretary admit that the real reason that Japanese companies come to Britain and have factories here is because, as with Nissan in Sunderland, they can pick up £300 million of taxpayers' money to set up a factory with no-strike agreements, with only 10 per cent. of the work force being trade union members? They pinched the jobs of other car workers in other parts of Britain. The truth is that the Japanese Government have taken the British Government for a ride, because our balance of trade deficit with Japan is about three times higher than the value of goods that we send to Japan, yet Japan was the nation which was reckoned to have lost the war—and Germany is running a close second.

Mr. Hurd

The hon. Gentleman is perfectly right in this —Japanese firms, and those whom they employ in this country, are benefiting from the reforms and changes that this Government brought to British industry. That is part of the reason why Britain is attractive to Japan, and a large part of the reason for rejecting the nostrum of the social chapter.

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