HC Deb 15 June 2000 vol 351 c1101
11. Mr. Michael Fabricant (Lichfield)

If he will make a statement on car manufacturing in England. [124594]

The Secretary of State for Trade and Industry (Mr. Stephen Byers)

In 1999, we saw the highest total number of cars produced in the United Kingdom since 1972. Although we recognise that in a dynamic economy there will be changes in the sector, we are confident that it will remain a major employer.

Mr. Fabricant

We all welcome the initiative to introduce cheaper cars, but does the Secretary of State realise that by announcing the initiative without saying when or how the aim will be achieved, he has caused a real problem for manufacturers and distributors, as John Towers of the Phoenix group said only yesterday?

Will the right hon. Gentleman admit, in a moment of honesty, that perhaps he made the announcement a little too soon? There is a hiatus in the sale of cars, which is causing problems both for distributors and suppliers. When will the Government learn the lesson that they should think first of the consequences before announcing new initiatives merely for the sake of political spin?

Mr. Byers

It was the hon. Member for Tiverton and Honiton (Mrs. Browning), who speaks for the Opposition, who urged me to respond quickly to the Competition Commission's report. She is now complaining that that was six months ago, and that I delayed too long. That is the reality; Opposition Members need to get some consistency in their arguments.

I responded to the commission's report. On Monday I put out an order for consultation, and the industry has 30 days to comment on it. We shall then reflect on the matter and make a decision accordingly. How long the process will be, and when implementation will take place. will be decided in the light of the consultation process. That is exactly how it should be done.

We are not prepared to tolerate a situation in which the consumer in the United Kingdom, as the report showed, is paying on average £1,100 too much for each car purchased. The Conservative party in government did nothing about that, but we will.