House of Commons Hansard Debates for 16 May 1990

Mr. Douglas Hogg : I met representatives of the Scotch whisky industry on 5 April to discuss my proposal to introduce legislation permitting gin, rum, vodka and whisky sold on licensed premises to be served in a single round metric quantity of 25 ml from the middle of this year and to prohibit the use of the existing imperial quantities after 31 December 1994. Having considered the industry's representations, I announced on 3 May my intention to consult interested parties about the possibility of also permitting one further metric quantity of 35 ml and of extending to other spirits the requirement for prescribed measures.

Mr. Sims : To ask the Secretary of State for Trade and Industry whether, in view of the United States section 301 initiative against Taiwan in regard to distilled spirits, he is taking steps to ensure that any resultant liberalisation applies equally to Scotch whisky.

Mr. Redwood : The authorities in Taiwan are well aware of United Kingdom concerns. Her Majesty's Government have no dealngs with the Taiwanese authorities, but United Kingdom concerns on this and other matters are put across very clearly in Taipei and London by the Anglo- Taiwan Trade Committee, a private organisation set up to promote British exports to Taiwan.

The Scotch Whisky Association recently went on a mission to Taiwan during which further representations were made to the appropriate Taiwanese authorities.

Departmental Reorganisation

59. Mr. Bill Michie : To ask the Secretary of State for Trade and Industry if he has yet reached a decision on the reorganisation of his Department.

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74. Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry if he has yet reached a decision on the reorganisation of his Department.

111. Mr. Morley : To ask the Secretary of State for Trade and Industry if he has yet reached a decision on the reorganisation of his Department.

Mr. Forth : I have nothing to add to the statement on the structure of my Department which my right hon. Friend made on 21 February in answer to a question from my hon. Friend the Member for Nottingham, East (Mr. Knowles), Official Report, columns 783-84.

Capital Adequacy

61. Mr. Ian Taylor : To ask the Secretary of State for Trade and Industry what assessment has been made by his Department of the implications for British financial institutions of any change in arrangements for capital adequacy.

Mr. Redwood : The European Commission has consulted member states and other interested parties in preparing its proposals for a directive on the capital adequacy of Community investment firms, which should be published shortly. The Government will continue to take account of the views of British financial institutions during the negotiation of the directive. I am particularly concerned that the levels of initial capital proposed may be against the interests of smaller and new financial intermediaries.

British-built Cars

Mr. Douglas Hogg : The available figures, showing United Kingdom registrations of British-built cars, are as follows :

(a) 915 thousand ;

(b) 750 thousand ;

Car Production

67. Mr. Donald Thompson : To ask the Secretary of State for Trade and Industry whether he will list the numbers of cars produced in the United Kingdom over the last five years.

Mr. Douglas Hogg : I refer my hon. Friend to my replies earlier today to my hon. Friends the Members for Daventry (Mr. Boswell) and for Hornchurch (Mr. Squire).

100. Mr. Favell : To ask the Secretary of State for Trade and Industry how many cars were produced in the United Kingdom in (a) 1979 and (b) 1989.

Mr. Douglas Hogg : The figures are as follows :

(a) 1.070 million.

(b) 1.299 million.

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Hosiery and Knitwear

69. Mr. Janner : To ask the Secretary of State for Trade and Industry whether he will make a statement regarding the hosiery and knitwear industry in Leicester.

Mr. Douglas Hogg : I refer the hon. and learned Member to my answer to his question given in the Official Report for 9 January at column 599.

West Germany

70. Mr. Martyn Jones : To ask the Secretary of State for Trade and Industry if he will make a statement on the level of United Kingdom trade with West Germany.

116. Mr. Lambie : To ask the Secretary of State for Trade and Industry if he will make a statement on the level of United Kingdom trade with West Germany.

Mr. Ingram : To ask the Secretary of State for Trade and Industry if he will make a statement on the level of United Kingdom trade with West Germany.

Mr. Redwood : In the first quarter of 1990 United Kingdom visible exports to West Germany were £3 billion, an increase of 20 per cent. over the first quarter of 1989. On the same comparison, visible imports from West Germany rose by 11 per cent., to £5 billion.

82. Mr. Clelland : To ask the Secretary of State for Trade and Industry when he last met his West German counterpart to discuss the trade deficit of the United Kingdom with West Germany.

93. Mr. Frank Cook : To ask the Secretary of State for Trade and Industry when he last met his West German counterpart to discuss the trade deficit of the United Kingdom with West Germany.

96. Mr. Cohen : To ask the Secretary of State for Trade and Industry when he last met his West German counterpart to discuss the trade deficit of the United Kingdom with Germany.

Mr. Redwood : DTI Ministers maintain close contacts with their West German opposite numbers on a range of issues. The Secretary of State last met the Federal Economics Minister, Dr. Haussmann, in London at the Anglo- German summit on 30 March.

Car Industry

76. Mrs. Fyfe : To ask the Secretary of State for Trade and Industry when he will next meet the major car manufacturers to discuss matters relating to the car industry.

83. Mr. Galloway : To ask the Secretary of State for Trade and Industry when he will next meet the major car manufacturers to discuss matters relating to the car industry.

Mr. Douglas Hogg : The Government have regular contacts with the major car manufacturers on a range of issues of interest to the industry.

80. Mr. Roger King : To ask the Secretary of State for Trade and Industry what was the value of British motor industry exports for the year 1989.

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Mr. Douglas Hogg : The figure is £8,193 million.

EC Industry Council

77. Mr. McCartney : To ask the Secretary of State for Trade and Industry what matters he expects to discuss at the next meeting of the European Economic Community Industry Council.

Mr. Douglas Hogg : The next meeting of the Industry Council, at which I will be representing the United Kingdom, will be held on 28 May. The provisional agenda proposes discussion on steel, shipbuilding, semi- conductors, small and medium-sized enterprises, and audio-visual matters.

Small Investors

78. Mr. Knapman : To ask the Secretary of State for Trade and Industry what discussions he has had with institutions in the City of London on ways to encourage the growth in the number of small investors.

Mr. Redwood : I regularly discuss ways of promoting wider share ownership with institutions and individuals, both in the City and elsewhere. In a recent speech to the Institute of Economic Affairs I outlined a number of areas in which further action is needed to encourage the small investor. I also welcome other innovative ways of making the City more accessible to small shareholders which are being developed.

Iron and Steel Exports

84. Mr. Devlin : To ask the Secretary of State for Trade and Industry what was the level of exports of United Kingdom-produced iron and steel in (a) 1979 and (b) 1989.

Mr. Redwood : United Kingdom exports of iron and steel products on an ECSC basis were (a) 3.72 million tonnes, with a value of £767 million, in 1979 ; and (b) 5.60 million tonnes, with a value of £1, 886 million in 1989.

Industrial Performance

88. Mr. Adley : To ask the Secretary of State for Trade and Industry what proposals he has to improve the performance of British industry.

Mr. Douglas Hogg : The Government continue to pursue policies intended to improve the climate for business activity, and to reduce the burdens on business. In addition, my Department continues to operate a range of specific schemes to improve business performance under the enterprise initiative.

Single Market

94. Mr. Irvine : To ask the Secretary of State for Trade and Industry how many of the directives necessary to complete the single European market have yet to be implemented ; and whether he will make a statement.

Mr. Redwood : The Commission's fifth progress report on the single market shows that the United Kingdom, as recorded by the European Community, has the best record in the Community for the implementation into national legislation of single market measures with nine measures

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not implemented as at 1 March 1990. Unfortunately only 21 of the directives have been implemented in all European Community member states.

My Department's publication "Progress on Commission White Paper" also shows that as at 1 March there were 60 individual directives which had been adopted and which were not yet required to have entered into force. Also, 139 measures had not been adopted, five of which had not yet been presented to the Council. Copies of this publication have been deposited in both Libraries.

Textile Trade

95. Mr. Graham : To ask the Secretary of State for Trade and Industry which issues he will raise in relation to the international trade in textiles when he next meets his European Economic Community counterparts.

105. Mr. Ted Garrett : To ask the Secretary of State for Trade and Industry which issues he will raise in relation to the international trade in textiles when he next meets his European Economic Community counterparts.

110. Dr. Godman : To ask the Secretary of State for Trade and Industry which issues he will raise in relation to the international trade in textiles when he next meets his European Economic Community counterparts.

Mr. Redwood : When he sees his EC colleagues at the informal Trade Ministers' meeting in Dublin this week, my right hon. Friend the Secretary of State for Trade and Industry will be discussing developments in the Uruguay round negotiations on international trade in textiles and the way forward, both in relation to the EC's preferred method of phasing out the multi-fibre arrangement over a transitional period and the parallel strengthening of GATT rules and disciplines.

Director General of Fair Trading

101. Mr. McCrindle : To ask the Secretary of State for Trade and Industry on how many occasions during the past 12 months he has rejected the formal advice of the Director General of Fair Trading.

Mr. Forth : In the last 12 months formal recommendations from the Director General of Fair Trading have not been accepted on two occasions.

Pirate Radio

103. Mr. Evennett : To ask the Secretary of State for Trade and Industry what additional action he intends to take to deal with pirate radio broadcasting in Greater London.

Mr. Forth : Pirate radio is a nuisance that can endanger lives and disrupt business. The radio investigation service of my Department's radiocommunications agency has powers to raid pirate stations and prosecute offenders where this proves necessary. It will be considerably helped in its efforts by new powers in the Broadcasting Bill that is currently before the House.

Passenger Car Prices

107. Mr. Dykes : To ask the Secretary of State for Trade and Industry if he will initiate an independent inquiry into passenger car prices in the United Kingdom.

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Mr. Douglas Hogg : The Director General of Fair Trading announced on 9 May that he had made a reference to the Monopolies and Mergers Commission on the supply of new motor cars in the United Kingdom.

Business Receiverships

108. Mr. Ieuan Wyn Jones : To ask the Secretary of State for Trade and Industry if he will obtain a copy for his departmental library of the recently published KPMG Peat Marwick McLintock survey on the number of businesses forced into receivership.

Mr. Redwood : Yes.

East Midlands

109. Mrs. Currie : To ask the Secretary of State for Trade and Industry if he will estimate the level of investment in the east midlands now provided by foreign-owned companies ; and how that number may change by 1995.

Mr. Douglas Hogg : According to the latest figures available to the Department's Invest in Britain Bureau, from 1979 to 1989, 142 inward investment decisions were made to locate in the east midlands. These include the establishment of a new business, expansion or acquisition of an existing business and involvement in joint venture. The projects were expected to create 11,640 new jobs and, since 1983 when the relevant records were started, to have safeguarded a further 8, 900. The figures are based on information provided by the companies themselves at the time of the investment decision and do not take account of subsequent developments.

Although growth in inward investment in the United Kingdom is expected to continue into the 1990s, it is not possible to predict the likely amount of such investment nor its location.

Consumer Guarantees Bill

112. Mr. Watson : To ask the Secretary of State for Trade and Industry what further representations he has had on the Consumer Guarantees Bill.

113. Mr. Alan W. Williams : To ask the Secretary of State for Trade and Industry what further representations he has had on the Consumer Guarantees Bill.

118. Mr. Wilson : To ask the Secretary of State for Trade and Industry what further representations he has had on the Consumer Guarantees Bill.

Mr. Forth : At the Committee stage of the Bill I undertook to inform members of the Committee of the representations I had received about various aspects of the Bill, where I had the agreement of the parties concerned to do so. This I have done. Further representations received since Committee were made in confidence and it would be inappropriate to give details of them.

Telecommunications

119. Mr. Ian Bruce : To ask the Secretary of State for Trade and Industry what plans the Government have to allow more suppliers into the telecommunications market.

Mr. Forth : The major liberalisation which the Government have already introduced in United Kingdom

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telecommunications, including the recent announcement of licences for three personal communications networks, has allowed many new suppliers to flourish. I have no further significant plans at present, pending the Government's review, starting in November this year, of the BT/Mercury duopoly in the provision of fixed link services.

Wessex Trust

120. Mr. Ashdown : To ask the Secretary of State for Trade and Industry if he will make a statement on action taken by his Department since the collapse of Wessex Trust in 1984.

Mr. Redwood : Between February and July 1986 my Department contributed to the investigation into Wessex Trust co-ordinated by the fraud investigation group of the Crown prosecution service by carrying out inquiries into companies concerned in the affairs of the trust.

Investors' Compensation

121. Sir William Clark : To ask the Secretary of State for Trade and Industry what plans he has to amend the Financial Services Act 1986 to empower the Securities and Investments Board to require recognised professional bodies to contribute to the central investors compensation scheme.

Mr. Redwood : None. Paragraph 3 of schedule 3 to the Financial Services Act requires the recognised professional bodies to have adequate arrangements for compensating investors.

Exports (Manufactures)

Mr. John Evans : To ask the Secretary of State for Trade and Industry what steps his Department plans to take to increase exports of British manufactured goods.

Mr. Redwood : In 1989, the United Kingdom exported £75 billion worth of manufactured goods, a 16 per cent. increase on 1988. The Government will continue to follow the macro-economic policies which have created a climate in which United Kingdom firms can prosper and increase their exports. The Government will also continue to provide direct support to United Kingdom firms seeking business overseas by providing a wide range of advice, information and assistance through the British Overseas Trade Board.

Illegal Broadcasting

Sir John Wheeler : To ask the Secretary of State for Trade and Industry how many raids have been carried out in 1990 by radio investigation service enforcement teams in the Greater London area ; with what result ; and how many prosecutions have been successful.

Mr. Forth : The radio investigation service of my Department's radiocommunications agency has so far this year carried out a total of 169 raids on unlicensed broadcasting stations operating in the Greater London area. On each occasion equipment used in the commission of the offence was seized and on 14 occasions persons believed to be connected with the unlicensed station were interviewed with a view to prosecution.

Between 1 January and 30 April 1990, 33 persons were successfully prosecuted for their involvement with such

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stations in the Greater London area. The average fine imposed was £287 and average costs of £209 were ordered to be paid. However, one person was sentenced to seven days' imprisonment. Invariably the courts ordered that the equipment used in the offence be forfeited.

Sir John Wheeler : To ask the Secretary of State for Trade and Industry how many officials are employed in radio investigation service enforcement teams in the Greater London area ; what is the extent of their workload ; and what proposals he has to increase the numbers of such personnel.

Mr. Forth : The radio investigation service of my Department's radiocommunications agency currently employs 25 officers on enforcement work in the Greater London area. Their remit involves regulating all categories of radio use and responding to complaints of interference from authorised users. The performance of the radio investigation service is kept under review to ensure that the service is correctly resourced.

Technology Transfer

Mr. Atkinson : To ask the Secretary of State for Trade and Industry whether the transfer of technology was discussed at the recent Bonn CSCE conference on economic co-operation in Europe ; and if he will make a statement.

Mr. Redwood : Among the issues discussed at the conference was the encouragement of exchanges of know-how in a number of fields including the environment, agro-industry and food processing. Participating states also agreed to co-operate in fields such as energy conservation ; raw material saving techniques ; hydrocarbon technologies ; and the safety of nuclear energy installations.

Internal Market Council

Mr. French : To ask the Secretary of State for Trade and Industry if he will make a statement on the Internal Market Council held in Brussels on 14 May.

Mr. Redwood : I attended the Internal Market Council in Brussels on 14 May. The Council held preliminary discussions on the legal protection of computer programmes, and on a proposal for extending the patent life for pharmaceuticals. Further discussions were also held on the European company statute.

The Commission made a presentation on barriers to takeover. The United Kingdom gave a strong welcome to the proposals to amend three directives in company law, which were the Commission's response to a United Kingdom request for action. The proposals represent a step towards a fair and transparent market, in which shareholders' interests are properly respected.

There was also substantive discussion of the motor insurance services directive. The Irish Presidency had worked hard to produce a compromise, which the United Kingdom was prepared to accept, although it did not go as far in liberalising motor insurance as we would have liked. It was disappointing that some member states could not accept even this compromise, and seemed intent on blocking moves towards a common market in motor insurance. The proposal will be discussed again in June following further work in the Committee of Permanent Representatives.

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Indonesia

Mr. Madden : To ask the Secretary of State for Trade and Industry if he will make it his policy to refuse export licences for the export of military equipment, including Tornado aircraft and naval vessels, to Indonesia.

Mr. Redwood [holding answer 14 May 1990] : Export licence applications for military equipment, including aircraft and naval vessels, are considered on a case-by-case basis, in accordance with stringent criteria. It is not our practice to grant a licence for the export of military equipment which would not be in the national interest or which is likely to be used for internal repression.

Bristol Evening Post

Mr. Sayeed : To ask the Secretary of State for Trade and Industry when he expects to be able to announce his decision over the report by the Monopolies and Mergers Commission on the attempt by Mr. David Sullivan to take a controlling interest in the Bristol Evening Post plc.

Mr. Redwood [holding answer 14 May 1990] : The report will be published and the Secretary of State's decision announced as soon as is practicable.

Industrial Output

Mr. Ralph Howell : To ask the Secretary of State for Trade and Industry if he will give details of (a) the overall output and (b) the output per person engaged, in each of the following industries, for the years 1979 and 1989 : (i) agriculture, (ii) the steel industry, (iii) coal mining,(iv) car industry, (v) electrical goods industry, (vi) local government and (vii) the National Health Service.

Mr. Norman Lamont : I have been asked to reply.

Estimates are not compiled on precisely the basis requested, but index numbers of output and of output per head are available for the following industry groups, on a 1985=100 basis, as shown in the table :

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