Economic Affairs

Part of the debate – in the House of Commons at 2:33 pm on 1 December 2004.

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Photo of Mr Martin O'Neill Mr Martin O'Neill Chair, Trade & Industry Committee, Chair, Trade & Industry Committee 2:33, 1 December 2004

I understand the hon. Gentleman's point, but it is not the point that I am trying to make. I am saying that the engineering supply chain for the motor car industry is currently fragile. We do not want to see a continuing deterioration in what might be regarded as the two UK bankers. Companies such as Jaguar are prestigious, and companies such as MG Rover still account for a large volume of orders, although perhaps not for a large volume of output, but many traditional manufacturing supply chain companies operating in this part of the world and the economy are fragile at present, and if they fell by the wayside Japanese companies would find inward investment less attractive.

Those companies do not necessarily need bribes any more, because we have a good labour force, good industrial relations and high productivity levels. We are confident that there will be demand for our product in the UK. However, they tend to operate on a "just in time" production basis. They need essential spare parts—widgets and so forth—to be close at hand: they need them yesterday, virtually. That becomes rather difficult if the supply chain extends to Budapest or Bratislava.