§ 9. Mr. Alan Simpson (Nottingham, South)What assessment she has made of the barriers to fair competition facing the UK cycle industry in the domestic market. [49380]
§ The Minister for Science, Energy and Industry (Mr. John Battle)My Department makes every effort to ensure that fair and competitive markets are maintained for all sectors of industry in the United Kingdom, including the bicycle industry, which my hon. Friend champions.
§ Mr. SimpsonI know that my hon. Friend is aware that the Raleigh Cycle Company is located in my constituency and provides some 90 per cent. of United Kingdom bicycles. Is he aware of the legacy of unfairness left to this Government as a result of the Tories' treatment of the United Kingdom cycle industry? First, they refused to tackle the abuse of the quota system, which allowed foreign competitors to dump bicycles from south-east Asia on the United Kingdom market. They refused to take action equivalent to that initiated by the French Government to end that practice. Secondly, the previous Government refused to tackle the unfairness in the tax system, which requires United Kingdom manufacturers to pay tax on imported gearing systems while competitors are not required to do so.
§ Madam SpeakerOrder. What is the hon. Gentleman's question to the Minister?
§ Mr. SimpsonI am asking whether the Minister is willing to re-examine the legacy of unfairness in the tax and subsidy systems, which saw the Tories subsidising competitors for the provision of screwdriver assembly sites for bikes while disfavouring United Kingdom manufacturers.
§ Mr. BattleRaleigh is a world-renowned company, and we want it to remain so. The United Kingdom bicycle industry has been under pressure from far eastern imports. As a result of complaints and investigation, action was 566 taken recently against bicycle imports from China, Thailand, Indonesia and Malaysia and duties have been imposed. I understand that the European Commission is investigating the dumping of bicycles by Taiwan. That issue was discussed at a member states meeting in an advisory committee in July. Once it is proved that there is a clear case of substantial damage, measures will be taken. We shall continue to oppose unfair trading practices in an effort to ensure that Raleigh has a successful future.
§ Mr. Edward Garnier (Harborough)The Minister anticipated my question by referring to cheap far eastern bicycle imports. What instructions have the President of the Board of Trade and her team and Foreign Office officials given to our commercial attachés in the People's Republic of China and other far eastern countries about keeping a close look-out for the dumping of cheap far eastern bicycle imports, which skews the market for home-made bicycles in this country?
§ Mr. BattleCommercial attachés are under instruction to keep a "close look-out", as the hon. and learned Gentleman puts it. In order to prove a clear case of substantial damage and dumping, we must do our homework. We shall look out for unfair trading practices to ensure that our industry is not damaged unfairly. I cannot say more than that.