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Motor Vehicle Imports

Volume 959: debated on Monday 27 November 1978

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25.

asked the Secretary of State for Trade what proportion of the British car market was met by imported vehicles during the last month for which figures are available.

Imported vehicles accounted for 51·7 per cent. of the British car market in October 1978, according to figures published by the Society of Motor Manufacturers and Traders.

Will my hon. Friend confirm, or at least consider the proposition, that changes in currency values may not by any means have been adequately reflected in the prices of motor vehicles imported from certain foreign producers? If this is so, is it not the case that this is scarcely compatible with the principle of fair competition?

I think that my hon. Friend is suggesting that there may be dumping by some countries. We have had some representations about this and have examined the evidence. If my hon. Friend has further evidence, I hope that he will produce it.

Is the Minister aware of the correlation between increased imports and strikes at Ford? Can he tell us whether the figures for that month were in any way boosted by the Ford strike? Has he formed any estimate of any further increase in imports which will be likely as a result of Government action contemplated against the company, which has been seeking to carry out Government policy?

The higher import figures mainly reflect increased imports by the American multinationals in the United Kingdom, which partly reflect the industrial situation—but not wholly. The level of imports by those companies is high, although I appreciate that, for example, with Ford, a large number of those imported cars have British components. We look to increased British production in future by those companies.

Is my hon. Friend aware that those figures will cause great concern and alarm throughout the West Midlands and will reflect adversely upon the steel industry and all manufacturers of component parts? In view of my hon. Friend's earlier reply concerning the agreement on imported steels, does he not think that it is high time that we sought an agreement to control the number of cars and heavy vehicles being imported? Further, is it not about time that we received a reply to this question which said more than that there would be retaliation by foreign manufacturers?

About 70 per cent. of our car imports are from the EEC and we are precluded, under the Treaty of Rome, from taking restrictive action against them.

As for the remainder, the largest supplier is Japan. Here we have taken action. First there have been no direct imports of heavy commercial vehicles. It is too early to say with certainty, but it is possible that the number of cars and light commercial vehicles entering the country from Japan this year will be below the 1977 level of shipments. To that extent, it seems as though the Government's action in respect of those imports could be successful.

Which of the major United Kingdom car producers is in favour of the so-called voluntary restraint on the export of cars from Japan to the United Kingdom?

There have been full discussions with the Society of Motor Manufacturers and Traders by the Government during all the negotiations that they have held with the Japanese. This is not an inter-governmental agreement: it is an inter-industry understanding, which was clarified by the Government in March this year. It had the full backing of the British manufacturers.