§ Mr. Austin MitchellTo ask the President of the Board of Trade what has been the net loss of employment in the motor manufacturing industry as a result of the establishment of Japanese car plants in the United Kingdom; and what was the cost to public funds in grants and subsidies and in supporting those made unemployed.
§ Mr. EggarThe United Kingdom has successfully attracted £3.5 billion of investment from Japanese car manufacturers which have established plants here since 1986. This has directly created 9,500 jobs and is generating £1.5 billion a year in additional component procurement in the UK and continental Europe. It has also made a major contribution to improving quality, productivity and competitiveness across the industry. The Government assistance provided was limited to £125 million to Nissan to establish and expand its Sunderland plant.
The United Kingdom is now the most rapidly expanding car manufacturing base in Europe with significant new investments announced in the last year by the major vehicle manufacturers. The recent announcement by Toyota of the expansion of its Burnaston plant is an important example of this. There has been a net loss of 27,000 jobs in the motor vehicles and parts sector since 1986 which reflects underlying improvements in competitiveness and the introduction of lean manufacturing techniques. It is not possible to determine the impact of these changes on the numbers unemployed and the associated costs to public funds.