HL Deb 06 December 1978 vol 397 cc111-2

2.40 p.m.

Lord PLANT

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government by what percentage Ford and British Leyland have increased the factory prices of their vehicles each year during the last four years; and what are the factory prices of similar vehicles in the USA, Japan, Germany and France.

Lord LEONARD

My Lords, in 1975, 1976, 1977 and 1978 to date the ex-factory prices of Ford vehicles rose on average by 20 per cent., 16 per cent., 20 per cent. and 9 per cent. respectively, and those of British Leyland vehicles by 17 per cent., 23 per cent., 19 per cent. and 12 per cent. respectively. I regret that information relating to the factory prices of foreign manufacturers' vehicles is not available.

Lord PLANT

My Lords, will my noble friend agree that to many people at least it seems that the price of cars in the United Kingdom has increased two and a half times in four years, whereas General Motors and Ford worldwide have only increased their prices one and a half times? In view of the fact that Ford United Kingdom made £4,000 profit per employee last year, will my noble friend confirm that its car price increases will be subjected to scrutiny by the Price Commission?

Lord LEONARD

My Lords, I am not in a position to substantiate or to disagree with what my noble friend says about the prices of cars of General Motors compared with the prices of British cars. However, the Price Commission is a statutory body which in itself can check if it feels that the profits are not in keeping with the prices which are charged to the public. I do not think that I can speak for General Motors and the prices it charges in this instance.

Lord HARMAR-NICHOLLS

My Lords, is the noble Lord not aware that we in this country should be disturbed that plant owned by Ford in Europe gives a return of 98 per cent. whereas identical plant owned by Ford in this country gives a return of only 66 per cent.? It is that fall in the output here compared to abroad which affects the prices which can be charged and which, more importantly, will decide how successful the company will be in employing people in the future.

Lord LEONARD

My Lords, I am afraid that the noble Lord is getting into the area of productivity, which to me is a different question from the Question which we are discussing here.