KP Foods (Hansard, 22 June 1988)

§ Mrs. Alice Mahon (Halifax)

I beg to ask leave to move the Adjournment of the House, under Standing Order No. 20, for the purpose of discussing a specific and important matter that should have urgent consideration, namely, the refusal by KP Foods to sell its Halifax factory as a going concern to the only buyer, leading to the loss of 1,000 jobs. The matter is urgent and specific because yesterday KP Foods, the owner of the Halifax factory, which is to close with the loss of 950 jobs, refused to sell the factory to the only buyer who has made an offer that can save the jobs. The buyer is a man of great experience in biscuit making and has more than enough capital to purchase the factory. His proposals for production on the site are for different markets from the products of United Biscuits (Holdings) plc. KP Foods has refused to sell on the basis that it, and only it, understands the biscuit industry. Although the factory is profitable, KP Foods claims that it is not profitable enough for its purposes. It further claims that nothing other than closure is practical. The truth is that KP Foods does not want to face any competition.

I ask the Government why, in their enterprise culture, only some entrepreneurs are allowed to take risks. If a genuine business man, who has the backing of the unions and the work force, is prepared to take risks, why will KP Foods not sell and allow the factory to be saved? Is the truth that Sir Hector Laing is afraid of competition, and that he does not really give a damn about the job losses and the hardship that his commercial decision will cause to thousands of my constituents? The factory is in an area of high unemployment and some deprivation.

Last year Sir Hector Laing was instrumental in using his position as a leading supporter of the Government and in donating £100,000 to the Tory party. I suggest that he should make not only that money, but a great proportion of the £36 million profit that he made last year available to the work force, from whom he has removed the last shred of hope. I repeat my earlier call for his resignation as chairman of Business in the Community. Halifax expects and deserves a more honourable person to head that project. I urge that this issue be debated.