HC Deb 03 February 1975 vol 885 cc923-4
7. Mr. Whitehead

asked the Secretary of State for Industry whether his Department is considering fresh studies of the effects of multinational companies on the freedom of action of the United Kingdom Government.

Mr. Heffer

My Department keeps all aspects of multinational company operations under close review.

Mr. Whitehead

Is my hon. Friend aware that in the past fortnight there have been two disgraceful instances of the unilateral declaration of massive redundancies by American-owned firms in this country? Will he confirm that the Government maintain full freedom of action on these matters and on larger concerns, such as the negotiations which are now going on with Chrysler? Does he not feel that this is a matter for urgent Government study?

Mr. Heffer

My hon. Friend is quite right. The Department has been very concerned about the cases to which he refers. The Government certainly do maintain full freedom of action. These are matters of great concern and the Government are looking closely at the position.

Mr. Lane

Have the Government made a study of the benefits to the British economy of the operations of many of these multinational companies? If not, why not?

Mr. Heffer

A number of reports and studies have been made over many years on the whole question of inward investment. The Government have not said that there should not be inward investment; they have encouraged it. On the other hand, it is equally true that there are aspects that require the closest possible study.