HC Deb 01 December 1975 vol 901 cc1240-2
12. Mr. Michael Spicer

asked the Secretary of State for Industry whether he has received any application from Chrysler UK Ltd. for financial assistance.

Mr. Varley

As the hon. Member knows, the financial situation of Chrysler UK Ltd. is a subject of continuing discussion between the Government and the Chrysler Corporation. The feasibility of a number of options is being considered, and a report will be made to the House as soon as it is possible to do so.

Mr. Spicer

Will the right hon. Gentleman confirm or deny that the Government plan to make available £30 million to Chrysler, and will he acknowledge that, if that be so, the making available of such money at this time would be a scandalous misuse of that public money, both in its effects through the public debt on inflation and in its effect on the 20 million taxpayers, some of whom now are earning, after tax, almost less than is necessary for them to live?

Mr. Varley

I can neither confirm nor deny that £30 million—or £35 million—has been made available or suggested to Chrysler. There is a lot of speculation in the newspapers, and most of it is wrong. I can only say that the Government have been faced with an extremely difficult and grave situation, and in due course I shall make a full statement to the House.

Mr. Les Huckfield

Will my right hon. Friend take it that many of us on this side appreciate that, in dealing with Mr. Riccardo, Mr. Cafiero and Mr. Gillespie, he has a very difficult task, and that we sympathise with him in the difficult decision he has to take? Nevertheless, will he recognise that in Coventry and the West Midlands we now have unemployment approaching 10 per cent., and many of my constituents, especially those who work at the Chrysler factory at Ryton, do not know whether they have a job to go to next year? I ask my right hon. Friend to accept the need to make a statement to the House at the earliest possible opportunity, for the sake of confidence among the workers, customers and dealers in Chrysler cars.

Mr. Varley

What my hon. Friend said is very helpful. He understands the seriousness of the situation and he appreciates, I know, that no precise information can be given today. I give him an explicit undertaking that a full statement will be made to the House as soon as possible.

Mr. Heseltine

Although one understands the gravity of the situation in which he is placed, will the Secretary of State, for his part, acknowledge that the time is coming when a statement may be overtaken by events, since dealers are rapidly losing confidence, and if the dealer chain disintegrates no attempt to save Chrysler on a national scale will have any impact? Does the right hon. Gentleman recognise the grave urgency of his making at least a holding statement, so that confidence does not totally evaporate in the dealer network?

Mr. Varley

Last week I put out a statement, which I thought would probably help the dealers, following the discussions I had with Mr. Riccardo and the Chrysler company. This is one of the considerations. I believe that there are about 800 exclusive Chrysler dealers in the United Kingdom, and I know that they are just as worried as are those who work in Chrysler factories. I hope to be able to make another statement as soon as possible. I cannot go beyond that now.