HC Deb 13 February 1984 vol 54 cc17-8W
Mr. Baldry

asked the Secretary of State for Trade and Industry if he will explain for the purposes of the Nissan negotiations exactly how local content is defined; and what proportion is attributable to local parts.

Mr. Butcher

The definition of local content used was given in my reply of 23 January to my hon. Friend the Member for Oxford, East (Mr. Norris) at c.387. The proportion represented by local parts (including materials) will depend on the cost structure and degree of integration of the operation. However, at 80 per cent. local content my Department estimates that between two-thirds and three-quarters of bought-in components and materials by value might be expected to be sourced from local suppliers.

Mr. Baldry

asked the Secretary of State for Trade and Industry if he will estimate the effect on British vehicle research and development which may occur if the Nissan motor company were to set up a plant in the United Kingdom.

Mr. Butcher

My right hon. Friend the Secretary of State announced on 1 February the terms on which the Nissan project will proceed. In phase II of the project, Nissan would intend to establish research and development facilities in the United Kingdom, which will be expanded thereafter in line with expansion of the project. In addition, collaboration between Nissan and the United Kingdom components sector should itself generate a significant amount of research and development activity.

Mr. Rooker

asked the Secretary of State for Trade and Industry if the definition of local content in his statement about Nissan on 1 February applies exclusively to the United Kingdom.

Mr. Butcher

No. As indicated in my reply of 23 January to my hon. Friend the Member for Oxford, East (Mr. Norris) at c.387, it includes bought-in components and materials from European Community countries.