HC Deb 03 November 1998 vol 318 cc510-1W
Mr. Jenkins

To ask the Secretary of State for Trade and Industry how many people are employed in the car industry in the West Midlands. [57131]

Mr. Battle

[holding answer 29 October 1998]: According to the 1996 Census of Production, some 80,000 people in the West Midlands are directly employed in the automotive industry. This figure includes those directly employed by vehicle manufactures and those in the supply chains.

Mr. Jenkins

To ask the Secretary of State for Trade and Industry if he will make a statement on the prospects for the motor industry(a) nationally and (b) in the West Midlands. [57132]

Mr. Battle

[holding answer 29 October 1998]: Overall prospects for the industry remain buoyant. New car sales in 1998 are expected to total 2.2 million, the highest figure this decade. New investments announced so far this year total £1,550 million with 4,000 new jobs created in the last 6 months alone.

The recent launch of the new S-type Jaguar involves a £400 million investment in the West Midlands with 1,300 new jobs. Two other new models also launched at the Motor Show last week, and manufactured in the West Midlands, are Peugeot's new 206 model and the R75 from Rover. These new models will be key to the future of the motor industry in the region; all have been well-received.

Mr. Jenkins

To ask the Secretary of State for Trade and Industry what new measures he proposes to assist the motor car industry(a) nationally and (b) in the West Midlands. [57133]

Mr. Battle

With £1.55 billion of new investment and over 4,000 new jobs created so far this year, the car industry in the UK remains strong. It is not this Government's intention to single out any specific sector for special measures. Instead we are putting in place policies to build a stable economy capable of sustaining steady growth with particular emphasis on raising productivity and controlling inflation. This will benefit all sectors.

However, maintaining and enhancing productivity are a constant challenge for the industry. Companies have been working to put in place competitive practices and to deliver models which customers want to buy. Rover in particular is looking at these issues again in an effort which involves close and ongoing discussions between the management and workforce in the West Midlands. We will maintain a close interest in their progress.