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Car Manufacturing

I am pleased that this important debate is taking place today. It is about the manufacture of cars, vans, trucks and components in the United Kingdom. There is great interest in the number of jobs in that sector. I am glad to see the Minister in his place. I hope that he will give detailed responses to some of the questions posed this morning, and if he cannot answer today I hope that he will write. It is important to record how important that sector is. Britain is the sixth-largest manufacturing economy in the world. We now make almost twice as many cars in Britain as we did 25 years ago. Seven of the top vehicle makers are based in the UK, and 19 of the top 20 auto-part makers have a manufacturing presence in the UK. In my constituency of Chorley, we have a huge parts centre and the Leyland Trucks factory. In the north-west—just down the road from your constituency, Mr. Benton—we have Jaguar and Vauxhall. The motor industry has a major presence in the north-west, as it has in my colleagues' constituencies in the east and west midlands. Many people are bothered about the car industry and the components sector. Many companies have a presence in the area, and they are taking a lot of interest in it, and it is from that angle that we have to consider the matter. More than 75 per cent. of cars made in the UK are exported. Independent surveys show that the UK car plants are among the most productive in Europe. I stress that they are the most productive. Having painted such a picture—a good picture and a good story to be told, at least to begin with—why is there so much uncertainty and concern within our car manufacturing sector? What can we do about it? There is no doubt that globalisation presents massive challenges for the manufacturing industry. India and China have wages at about 15 per cent. of European levels, and they are expected to account for nearly half of global growth over the next 15 years, so it is a serious problem. In a speech on 23 October, the Minister stated:"““We cannot hold back global development, and protectionism certainly is not the answer.””" I accept that that is what the Minister said. He continued:"““The companies best placed to prosper in the knowledge economy are those that invest the most in R and D, that are most alive to the commercial opportunities of the ideas they generate; that most successfully bring their ideas to market.””" Absolutely. Great R and D is fantastic, but we should not forget that we need a manufacturing base to go with it. It is no use having the best ideas if we export the jobs. Yes, we must invest heavily in R and D. I fully agree with that statement, but the question has to be asked: what is being done to promote R and D and support, through financial incentives? I understand that R and D in the UK car manufacturing sector is so important. The Minister also said that"““protectionism is not the answer.””" I do not believe that old fashioned protectionism is the answer, but greater protection for UK employees is. We still lag behind our European counterparts in employment rights. That is the problem.