HC Deb 06 December 1995 vol 268 cc362-3
12. Mr. Simpson

To ask the President of the Board of Trade if he will make a statement on the effects in the United Kingdom of the dumping of cycles made by China; what actions have been taken to prevent this; and what assessment he has made of how effective the measures have been. [2610]

Mr. Oppenheim

The European Community imposed anti-dumping duties on Chinese bicycles on 5 March 1993, since when imports have fallen by 97 per cent.

Mr. Simpson

Has the Minister even understood the letter sent to him by the chief executive of Raleigh in my constituency on 10 November, in which he detailed criticisms of the Government's policies that have assisted the Chinese in dumping bikes in this country as a result of concessionary rates of duty? The Government have colluded with the Chinese in avoiding duties by importing bikes through third countries. Britain has been made the laughing stock of Europe by becoming known as the dodgy dealers' route into the European Union.

The Government have assisted in the process of duty evasion by allowing up to 800,000 Chinese cycles to come into Britain and the rest of Europe in kit form without any duties being payable. They have now grant-aided a Chinese firm to assemble the duty-free kits, after which the bikes will be sold within the British market. Is this yet another example of the Government peddling rubbish in its industrial policies?

Mr. Oppenheim

It may be a tribute to the rightward lurch of new Labour that yesterday, when I had the pleasure of debating against the hon. Gentleman at the university of London Labour club, I had the uncanny feeling that most members of the audience were closer to my position than to his.

The hon. Gentleman knows that the EC has some of the most draconian anti-dumping regulations in the developed world. Raleigh has already massively benefited from reduced sales of Chinese bikes. We have also to consider jobs that are created by companies which invest in Britain, the interests of bike retailers and the interests of those who buy bikes, who suffer poorer choice and higher prices as a result of any protectionist duties.

Mr. Garnier

Does my hon. Friend agree that one of the cycles that the United Kingdom does not need dumped on it is the inevitable downturn in the economic cycle that would flow from the imposition of the social chapter and a minimum wage? Does he—

Madam Speaker

Order. Hon. Members must ask specific and relevant questions. The hon. and learned Member cannot get away with that supplementary question. We shall move on.