HC Deb 20 July 1994 vol 247 cc305-6
8. Mr. Booth

To ask the President of the Board of Trade what assessment has been made of the contribution of Japanese investment in the British car industry in securing jobs.

The Minister for Trade (Mr. Richard Needham)

Japanese inward investment to the United Kingdom car industry has been very substantial, with total planned investment of more than £2 billion, creating more than 7,000 direct jobs. The wider benefits have also been significant, particularly among components suppliers.

Mr. Booth

Britain and the Government have enjoyed wide and considerable success in attracting Japanese investment, with nearly half of all that made in Europe in the last 10 years coming to this country—as is evidenced by the successful business men who have chosen Finchley in which to live. To what does my right hon. Friend ascribe that success? Is it the Government's low corporate taxation, the welcome that we give such companies or the success of the DTI's efforts? None of those would be offered by the Opposition.

Mr. Needham

It can primarily be ascribed to a Conservative Government who welcome Japanese investment and who introduced the industrial relations reforms that mean that Japanese companies setting up in the United Kingdom can operate as productively and profitably as in Japan, and to the fact that Britain does not have a Labour Government.

Mr. Geoffrey Robinson

Putting to one side the Minister's juvenile remarks about the reasons for investment in Britain, is he aware that it is widely welcomed throughout the country? The increasing level of local manufacture is also much welcomed. If the Minister can get down to industry and leave silly politics to one side, should not his next step be increasingly to concentrate design and development in the UK, which has many outstanding skills ready for exploitation? What will the Minister do about that?

Mr. Needham

I realise that the hon. Gentleman does not like political reality coming into his long and distinguished industrial career. However, he is right to say that we must maximise research and development facilities and our ability to design cars, which is formidable. He is also right to emphasise that we must give British industry the back-up and support to meet all its needs, which will ensure that the British automotive and components industries continue the success that they have enjoyed over the past few years. I assure the hon. Gentleman that, as long as we are in government, we will continue to do that.