HC Deb 19 May 1993 vol 225 cc231-2
8. Mr. David Evans

To ask the President of the Board of Trade how many cars are currently being exported each month from the United Kingdom; and what is the total value of the automotive industry to the United Kingdom economy.

Mr. Sainsbury

The automotive industry is an important part of the United Kingdom's manufacturing industry. So far this year, production for export is up by 7.31 per cent. on the same period last year.

Mr. Evans

Does my right hon. Friend agree that that success has been brought about by record inward investment, encouraged by low taxation, low interest rates and low inflation? Is he aware that because of unprecedented economic success under successive Governments, it is now impossible to park one's car in the House of Commons car park, as the lot opposite, w ho used to come here on bikes, now come here in cars?

Mr. Sainsbury

How welcome it is to hear praise for the achievements of any part of British industry and what a contrast it is with what we hear from the moaning minnies in the Opposition. How graphically my hon. Friend illustrated the success of the Government's economic policies; I congratulate him on that.

Mr. Eastham

Would not it be timely if the Minister were to congratulate some of the engineers who made those successful export figures possible? Is not it worth reminding him that Japanese investment in Britain has shown that Japanese management can manage the automobile industry far better than traditional British management and that the Japanese have invested in the industry, which traditional British management never did?

Mr. Sainsbury

I hope that, these days, when anyone on either side of the House congratulates British industry on an achievement—the automotive industry certainly deserves congratulation on the transformation that it has achieved—we are congratulating not the work force or the management as separate entities, but the whole of British industry working together, as the hon. Gentleman would know if he visited the car factories of today.

Mr. Streeter

Will my right hon. Friend join me in congratulating the Ford Motor Company on its outstanding success in recently being awarded the Queen's award for export?

Mr. Sainsbury

I am happy to join my hon. Friend in congratulating the Ford Motor Company. I would only add my congratulations to all sections of the automotive industry, including—let us not forget—the many component companies which are steadily increasing their exports to Europe.

Mr. Cousins

The whole House will want to congratulate the teams of car manufacturers and car manufacturing work forces, including that coming on stream in the great county of Derbyshire, which we still have with us. Does the Minister recognise that our car exporters have now fought their way back to their position of two years ago? Our balance of payment deficit on cars was more than £2 billion last year. Does the Minister expect the balance of payments deficit to be £2 billion or less this year?

Mr. Sainsbury

I hope that we will all look forward to a steady increase in the proportion of cars sold in Britain that are produced in Britain, whether they are produced by Japanese-owned companies, American-owned companies, French-owned companies or British-owned companies. The export success is put in perspective if one bears in mind the fact that the first-quarter exports this year were nearly three times the level of the first-quarter exports of five years ago.

Mr. Nicholas Winterton

I pay tribute to the role of the motor industry in our economy, as my right hon. Friend has done, but can he say when we will reduce our growing deficit in manufactured goods?

Mr. Sainsbury

One way of reducing that deficit to which I draw the attention of my hon. Friend is by encouraging inward investors to come here and produce manufactured goods, as the Japanese car companies are doing effectively. Of course, if we are to retain our attraction as a location for inward investors, we must be seen to remain a central part of the European Community and must also avoid saddling our manufacturers with the social chapter.