HL Deb 12 July 1978 vol 394 cc1591-2

3.1 p.m.

Lord AYLESTONE

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 whether they are aware of the significant importation of electric motors into the United Kingdom from the Eastern European bloc (especially Poland) at subsidised prices which are often less than the material content value; and what steps they propose to take to assist in combating this unfair competition.

Lord WINTERBOTTOM

My Lords, imports of electric motors in the range 1 hp to 100 hp from Eastern bloc countries took under 1 per cent. of the United Kingdom market in 1977. We are assisting the United Kingdom Manufacturers' Association with their contribution to a Community anti-dumping application for submission to the EEC Commission.

Lord AYLESTONE

My Lords, while thanking my noble friend for his reply, and declaring a very small personal interest, may I remind him that although the imports of these highly subsidised electric motors at the moment are standing at approximately only 1 per cent., the aim of the European bloc is to reach 10 per cent. in this country and they are already selling in Eastern Europe at 30 per cent. below their own market price?

Lord WINTERBOTTOM

My Lords, my noble friend is quite correct. In fact, the present situation as regards direct exports to this country is not serious, but the position in Europe is becoming serious and the result is that the EEC producers elsewhere are diverting their sales from home markets to the United Kingdom. This is a problem called "trade displacement" and it is becoming dangerous.

The Earl of HALSBURY

My Lords, would the noble Lord agree that the first line of defence in a situation of this kind should be to maximise productivity and cut out all overmanning in our domestic industries before we criticise other people's prices?

Lord WINTERBOTTOM

My Lords, that is a problem not so much about dumping as about productivity. What we are talking about is unfair competition as defined in various ways, but in this case as subsidised exports to this country.