I am glad to have this opportunity to reply on the important subject of Rolls-Royce, one of our finest engineering companies. I do not necessarily agree with everything that the hon. Member for Crewe and Nantwich (Mrs. Dunwoody) said, but it is obvious that she speaks with great knowledge of these matters and with great commitment to her constituents. The whole House will therefore be grateful to her for bringing the company's problems to our attention.

The future of the company is a matter of great concern to us all, and the Department is therefore following developments very closely. As the hon. Lady said, the Rolls-Royce motor car is a symbol of British excellence. Without any doubt, it is the best car in the world. It represents our country well beyond our borders. Everyone recognises it for what it is—the product of British skill and craftsmanship. As the hon. Lady said—I have walked around the works in Crewe—it is not just a question of excellent design or good upholstery. Excellence in craftsmanship and engineering goes right to the heart of every component in the car. If hon. Members have any free time, I recommend that they visit that factory. It is a revelation to see just how excellent our engineering standards can be. The hon. Lady spoke in moving terms about that and I endorse everything that she said about this wonderful British product.

Rolls-Royce has enjoyed a decade of success. However, I am just as concerned as the hon. Lady that this company, which is a national institution, now finds itself having to tackle some very difficult problems. A series of events have occurred that have had a serious effect on the market for these luxury cars. World economic conditions, the war in the Gulf and tax changes in the vital United States market have combined to stifle sales. The hon. Lady may be relieved to hear that only last week the Secretary of State wrote to the United States Government about their swingeing tax on luxury cars. We await a reply. We are working with the European Commission on that subject. I assure the hon. Lady that the Secretary of State is concerned about the effect that that United States tax has had and we intend to take action.