Motor Sector: Export Markets

Debate between Lord Grimstone of Boscobel and Baroness Warwick of Undercliffe

Monday 14th September 2020 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, the Government are working very hard to achieve a successful negotiation with the EU which will benefit our manufacturers, but I would draw the attention of the noble Baroness to the Japan FTA which we signed on Friday, to show what can be done. It allows UK auto manufacturers to access lower tariffs and tariffs that will, over a number of years, reduce to zero on a number of auto components such as road wheels, suspensions, systems and clutches. For some specific car parts, including speed indicators, the tariffs will reduce to zero.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, is the Minister aware that there is a problem not only with exports but with imports, where the UK is a manufacturer of leisure vehicles such as caravans and mobile homes? This issue was brought to my attention by a member of my extended family who runs such a business in the Midlands, and I declare that interest. Germany has supported a boom in its leisure vehicle industry, with the reduction of VAT on parts, and as a result it has become increasingly difficult to purchase parts for the UK’s industry, which currently has such potential for expansion. To avoid a serious drop in production and sales, and potentially in UK staycations, will the Minister consider whether such an incentive could be provided in the UK to support a similar rule here?

[Lord Grimstone of Boscobel (Con)]

My Lords, the noble Baroness makes a very good point and I am aware of the great enjoyment that these vehicles give to people throughout the United Kingdom. I do not have the details of those matters, but I will write to the noble Baroness with them.