Motorsport Industry

Part of the debate – in the House of Lords at 7:41 pm on 23 October 2002.

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Photo of Lord Stewartby Lord Stewartby Conservative 7:41, 23 October 2002

My Lords, I congratulate my noble friend Lord Astor of Hever on initiating this debate, on his persistence and effectiveness in raising these issues—he ensures that they are periodically discussed in your Lordships' House—and on covering the ground so effectively, as he always does. I have some questions for the noble Lord, Lord Davies of Oldham, who will respond. I hope for satisfactory answers.

Before going further, I should declare an interest. I am the director of a public company, one of the smaller subsidiaries of which supplies wiring, connectors and other equipment to the motorsport industry. I say that because it is the custom of the House to declare an interest and also because that is one of the reasons why I have a particular interest in this subject. My interest in motor racing goes back quite a long way. I remember in the 1940s when I was in short trousers that one weekend at school I swapped my two prize conkers for some Dinky toys. Although my conkers had carried all before them, unfortunately the Dinky toys that I got in exchange did not. But the incident led to an interest that has continued to this day.

My first question for the Minister is: do the Government really appreciate the value of this industry? My noble friend mentioned some of the key facts. It has a turnover approaching £5 billion, more than 30 per cent, I believe, exports. It also has a wider value. The industry, although very specialist, is a leader in advanced engineering and has transferable capabilities into the automotive and aerospace sectors. The technology is of much wider potential application in precision engineering generally. The industry also involves the development of important skills, which can be transferred outside the specific area of the motorsport industry.

As my noble friend said, the sector is mostly the preserve of smaller companies which are not necessarily always heavily capitalised. It is a fiercely competitive sector. The enterprise that those companies bring to the motorsport industry and, through that, to the wider precision engineering industries of this country is invaluable. I hope that the Government understand the importance of nurturing such activity.

My second question is: how effective do the Government believe regional development agencies are in supporting this process? I know that they have made a number of statements of support. But is there really very much to show for that? To the extent that they have provided support, is it really targeted in a way best suited to sustain the activities in Motorsport Valley?

My noble friend referred to the brain drain. That can take place at any level, from the top—at the strategic level—down to the skilled mechanics. It is terribly important that, having attained an international reputation for this specialised industry, we do not let it slip away to Germany, Italy or elsewhere where there is growing competition and an aspiration to take over the position that our industry carved out for itself.

My third and final question is: can we please have an explanation—my noble friend also asked for this—of the composition of the competitiveness panel, which I believe is due to meet fully for the first time next week? If the Government really have overlooked the MIA, that would be a contradiction of all that the panel is supposed to correct. The MIA, one would have thought, is the one body absolutely core to deliberations of that kind. The fact that the governing body of the sport, the MSA, is also, I believe, not involved at this stage, is baffling. Why will the Society of Motor Manufacturers and Traders, which has a much broader remit because it covers the ordinary automotive industry, be involved when the specific representatives of the motorsport industry—the subject of the whole exercise—will be excluded?

I hope that the Minister will give reassuring answers to our questions. Noble Lords taking part in this debate want to draw attention to the fundamental importance of this industry, despite its small size. We want it to flourish.