HC Deb 12 February 1969 vol 777 cc1288-92
5. Mr. Ogden

asked the President of the Board of Trade what discussions he has had with the new management of the combined General Electric Company-Associated Electrical Industries-English Electric Company about their proposals for the reorganisation and rationalisation of their operations; and what proposals he has put forward for the re-employment of men, women and plant made redundant by such reorganisation.

97. Mr. Heffer

asked the President of the Board of Trade what discussions he has had with the General Electric Company-English Electric Company about its proposed reorganisation; and if he will make a statement.

98. Mr. Julius Silverman

asked the President of the Board of Trade if he will give details of the discussions he had with the management of the General Electric Company-English Electric Company before the recent announcement of their proposal to close down plants belonging to this group in Witton, Birmingham and elsewhere.

101. Mr. Orme

asked the President of the Board of Trade if he will give details of the discussions he has had with the management of the combined General Electric Company-Associated Electrical Industries-English Electric Company about their proposals for reorganisation and the effect this will have on employment.

102. Mr. Arthur Davidson

asked the President of the Board of Trade if he will make a statement on the discussions he has had with the management of General Electric Company-Associated Electrical Industries and English Electric regarding the implication of the merger between the companies for the employment situation.

The President of the Board of Trade (Mr. Anthony Crosland)

The company notified my right hon. Friend the First Secretary of State before announcing its recent proposals for redundancies at certain of its works. I understand that it will shortly have further discussions with the trade unions. Depending on the timing and phasing of the redundancies, my right hon. Friend does not expect that any serious difficulties will arise in the redeployment of those affected. None of the four factories mentioned in the company's announcement is in a development area, but I shall, of course, watch closely the effect of any closures on our distribution of industry policy.

Disposal of surplus plant is a matter for the company.

Mr. Ogden

But what part did my right hon. Friend play in the decisions before they were announced? The Gov- ernment will be blamed for any short-term redundancies, regardless of the need for rationalisation and reorganisation, because they have approved the merger. What we are asking my right hon. Friend and his colleagues to do is to take part in decisions, not merely receive decisions which are made by the companies.

Mr. Crosland

I take the point which my hon. Friend makes, but the redundancy problem is a matter for my right hon. Friend the First Secretary of State. She can answer for herself, but I understand that she is satisfied that the company has fulfilled the pledge which it gave when the merger was approved to consult her about its rationalisation programmes in relation to redundancies.

Mr. Heffer

Is my right hon. Friend fully satisfied that there is sufficient emphasis on the part of the new merged firm on exports in certain directions? Is he aware that many of the workers believe that Mr. Weinstock is so mesmerised by the concept of a high margin of profit that certain aspects of the present production may be eliminated because the margin of profit is not so high, and this could well affect exports which are so important for the country's economy?

Mr. Crosland

My hon. Friend raises a rather more general point than the one in the Questions. As regards exports, which are my concern, I can only say that we are in touch with the company about how it sees the development of its exports, and I would not as of now accept the implications of what he said.

Mr. Silverman

Is my right hon. Friend aware that in the plant in my constituency at Witton these are the second major redundancies announced within 12 months? This is bound to have an extremely serious effect on the local employment situation, especially on the sort of highly-skilled labour employed there, which may have difficulty in finding alternative employment. I know that; this is a matter for my right hon. Friend the First Secretary of State and Secretary of State for Employment and Productivity, but will my right hon. Friend persist in his approach to the company to see that full advantage is taken of the opportunities for diversification and export?

Mr. Speaker

Order. Long supplementary questions mean fewer Questions.

Mr. Crosland

I am aware of the position at Witton, which I have discussed with my hon. Friend. But I would emphasise that all these proposed closures—they are still only proposals, which are to be discussed with the trade unions-are in areas of low unemployment. I do not at present see the likelihood that in consequence of the closures we shall have a serious unemployment problem in any of these areas.

Mr. Orme

Does my right hon. Friend agree that the large private combines now being created do not have sufficient public accountability to both the nation and the workers within the industry concerned? What are his views about the speed at which mergers are developing, and about whether they necessarily serve the country and the rationalisation programme that he supports?

Mr. Crosland

The question of accountability raises very wide issues which it would be hard to discuss at Question Time. My hon. Friend will have noticed from certain recent actions I have taken that I do not share at least the current uncritical view that all mergers are good under all circumstances.

Mr. Davidson

Does my right hon. Friend agree that one of the most damaging things for the morale of workers is uncertainty about whether their firm is to close? In my constituency, and I am sure in many others, rumours are spreading that a particular factory will close. I know that this is not my right hon. Friend's direct responsibility, but could he bring what influence he has to bear on the management of the company at least to make an announcement and give some sort of certainty to workers in its employ?

Mr. Crosland

I take my hon. Friend's point, but I cannot take on the responsibilities of another Department. This is entirely the responsibility of my right hon. Friend the First Secretary, and I know that she is well aware of the considerations my hon. Friend has just mentioned.

Sir C. Osborne

Why is the right hon. Gentleman's Department pushing mergers so hard generally throughout industry? What does he hope to achieve thereby?

Mr. Crosland

It does not seem the general opinion of Press commentators at any rate that my Department is engaged in pushing mergers as hard as it can on all sides.