HC Deb 24 January 1967 vol 739 cc1253-4
21. Mr. Rankin

asked the Minister of Technology if he will make a further statement on the effects of the Chrysler takeover on the employment prospects of those now engaged at Rootes' Linwood factories and the additional numbers who may expect to be employed there.

Mr. Benn

I am informed that Rootes Motors Ltd. plan to increase considerably the output of its Linwood plants. These developments will involve an increase in employment of some 4,000–5,000 phased over about five years.

Mr. Rankin

Is my right hon. Friend aware that, following his statement last Tuesday that employment at Rootes at Linwood would increase by several thousand, a Rootes spokesman stated that those figures were purely speculative? Has my right hon. Friend any comment to make on that?

Mr. Benn

I am glad to say that I am not answerable for what Rootes say, but my understanding of the expansion plan is that the employment will rise by this amount in the period I have mentioned. The pressings plant, which has been on a four-day week, went on to full time today. The car plant, which has been on a four-day week, went on to full time yesterday. Therefore, employment has already increased.

Mr. David Price

What is the right hon. Gentleman's understanding of how the Rootes-Chrysler plans for Linwood fit in with its plans for Coventry? Is there to be a similar expansion for Coventry? Is Coventry to run down? Or is it to remain at its present level?

Mr. Benn

The fact that we were involved in the negotiations with Rootes and Chrysler does not make me answerable for the full development of the plans. The position, as was explained clearly last week, is that there is a Rootes expansion plan and that Linwood, in which the Government have considerable investment of public money, was specifically mentioned. It is the hope that Rootes will grow and develop, and this is one reason why the I.R.C. director has been put on the board.