HC Deb 15 June 2000 vol 351 cc1095-7
8. Mr. Bob Russell (Colchester)

What assistance he is giving to United Kingdom diesel manufacturers to increase sales in the UK and overseas. [124589]

The Minister for Energy and Competitiveness in Europe (Mrs. Helen Liddell)

The Department works in partnership with the UK diesel engine industry to help improve its competitiveness and thereby increase sales in the UK and internationally. Our activities include support for the development of diesel engine technology and the extensive export promotion services offered by British Trade International.

Mr. Russell

I am grateful to the Minister for her reply, as far as it went, but does she not agree that diesel engine manufacturers feel that they are not getting the support that they need? In particular, may I draw her attention to Paxman in my constituency, now owned by MAN? Does she agree that her Department, and the Government in general, should encourage the Ministry of Defence and the privatised rail industry to purchase British-made diesel engines?

Mrs. Liddell

I know of the hon. Gentleman's interest in this matter. Indeed, he has raised it before on the Floor of the House. As for promoting diesel engine development, I have just come from a meeting with the Department of the Environment, Transport and the Regions that brought together the refining industry, the downstream oil industry and motor manufacturers. One of the first issues that we discussed was the emergence of new forms of diesel engine technology.

Indeed, through the Engineering and Physical Sciences Research Council, we support projects that are focused on the diesel engine sector. Eight grants have been awarded, amounting to some £1.3 million, specifically to support the development of diesel engines. Whenever the Government carry out procurement exercises for defence vehicles, they are aware that that is a matter of considerable importance to the industry, and do everything that they can to assist British industry.

I am conscious of the fact that the company in the hon. Gentleman's constituency has recently been taken over. I believe that that is viewed positively as an excellent opportunity to enlarge its potential, not just in the United Kingdom but internationally.

Mr. David Chaytor (Bury, North)

Is not the difficulty for diesel engines the fact that as the years go by, they are likely to become less important for private cars? That is because of the inevitable exhaustion of the world's oil reserves, which will reach their peak of production in a few years time, the inevitable rising price of oil, and the need to reduce carbon emissions by about 60 per cent. by the middle of this century. Would not the best support for diesel engine manufacturers be to encourage them to diversify into alternative sources of fuel, such as hybrid engines, gas-powered vehicles and fuel cells?

Mrs. Liddell

My hon. Friend makes an interesting point. It has to be said that this is not an either/or situation, or a question of solely developing new diesel technology at the expense of other technologies. Automotive manufacturers, and, indeed, diesel manufacturers, are looking at other aspects of powering vehicles, but some big issues have to be addressed.

Many of us associate diesel engines with the diesel engines of the past, and think of the London buses that belched out black fumes. New diesel technology is improving considerably, but we must still strike a balance—we must understand the extent to which these engines have an impact on the environment. My hon. Friend is right to say that it is essential to look at every new technology that comes along. As demand for cars increases, we must be sure that we have the fuels to drive them.

Mr. Geoffrey Clifton-Brown (Cotswold)

If the Minister is so concerned about the competitiveness of the vehicle manufacturing industry, will she make representations to her colleagues in the Treasury to drop the £1 billion energy tax to which the Labour party is committed, and to stop increasing the duty on diesel way in excess of inflation through the fuel duty escalator, which hits motorists so hard, particularly in rural areas?

Mrs. Liddell

I think that it was the Deputy Prime Minister who accused Conservative Members of wanting the country to have collective amnesia. I seem to recall that it was the previous Government who introduced the fuel duty escalator.

As for the climate change levy, Governments across the world are having to consider means of reducing emissions into the atmosphere. That is why the Government are taking action in a coherent focused way, by contrast with the behaviour of the Conservative party. which introduced the fuel duty escalator when it was in power.