HC Deb 14 May 1998 vol 312 cc506-7
7. Barbara Follett (Stevenage)

What action she has taken to promote the competitiveness of the automotive industry. [40959]

The Minister for Science, Energy and Industry (Mr. John Battle)

The Department is taking a number of measures to encourage all parts of the automotive industry to maximise their international competitiveness and to strengthen the United Kingdom's advantages as a location for investment.

Barbara Follett

I thank my hon. Friend for that reply and congratulate him and his Department on their efforts to foster research between universities and industries. Combined with the foresight initiative, that will do a great deal more to ensure the future competitiveness of the British automotive industry than was ever done by the Rag, Tag and Bobtail—and otiose—outfit opposite.

Mr. Battle

My hon. Friend refers to the foresight programme. In particular, the work of the cleaner vehicles task force looks to the future of the automotive industry, and to new technologies that will provide new jobs and go some way to tackle environmental problems. I would add only that, in order for the industry to be competitive, we must strengthen back-up companies, and ensure that the sector is strong as we move into a new century.

Mr. John Bercow (Buckingham)

What rationale can the Minister offer for the Government's policy of, on the one hand, encouraging people to abandon their cars and use public transport, and, on the other hand, handing out large subsidies to car manufacturers in an attempt to boost their competitiveness? Can the hon. Gentleman get his mind around that paradox, and explain it for the benefit of the House?

Mr. Battle

I had not previously heard the Conservatives campaigning for the abolition of the car; now, it seems, they are. The scheme to which my hon. Friend the Member for Stevenage (Barbara Follett) referred is a middle way towards achieving cleaner vehicles. One option would be to ensure that vehicles burned more environmentally friendly fuel. I do not think that improving the environment ought to be set at odds with vehicle use. The two are not, and will not be, at odds under this Government.

Mr. Richard Burden (Birmingham, Northfield)

My hon. Friend will be aware of the importance to the west midlands of the motor industry, including, in particular, the major Rover Group plant at Longbridge in my constituency. Will he take this opportunity to congratulate Rover on exports worth £3.7 billion last year, which is the company's highest ever figure? Is that not a tribute to Rover and its work force, and to the stable environment that the Government have generated for the motor industry?

Mr. Battle

I am happy to endorse what my hon. Friend says. According to the latest figures, United Kingdom car production is at its highest for 24 years, and represents 10 per cent. of UK exports. It is a successful sector, and will continue to be so under the Government.

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