MOTOR INDUSTRY (Hansard, 18 February 1975)

§ Q1. Mr. Hurd
asked the Prime Minister how many civil servants now report to him directly on the future of the motor industry.

§ The Prime Minister (Mr. Harold Wilson)
I refer the hon. Member to the reply which I gave to the hon. Member 1104 for Mid-Sussex (Mr. Renton) on 11th February.

§ Mr. Hurd
May I congratulate the Prime Minister and his hat on their safe return together? May I ask him, whatever advice he receives, to accept that for a year more and more people in the Cowley Works have accepted the need for radical change and that it would be a fatal mistake to ask the taxpayer to subsidise an existing set-up, including a complicated and confusing trade union structure? Does the right hon. Gentleman feel that special legislation would be required to implement whatever Sir Don Ryder advises?

§ The Prime Minister
I recognise the concern of the hon. Member about the position particularly at Cowley. He will know that some months ago British Leyland approached the Government about its problems and the need for investment and said that the company could be viable by cutting out some of the loss-making big sectors, which would probably mean, one might have thought, Cowley and Longridge. We said that we did not believe it right to have a mini car industry and that it should be a full-size industry. We offered to discuss the investment programme, and in the course of our discussion the liquidity problems became clear. Sir Don Ryder is going into this with great vigour and speed. I hope that we shall have a viable British motor car industry.

§ Mr. Leslie Huckfield
Is my right hon. Friend aware that in 1974, as far as new registration of financial out-turn is concerned, the two multinational corporations, Chrysler and General Motors, which are represented in this country, did considerably worse than British Leyland, as a result of which my constituents in Coventry who work for Chrysler are working only two days a week at the moment? Is there not now a case for extending the terms of the Ryder committee of inquiry to include at least Chrysler as well?

§ The Prime Minister
I do not think that is necessary at this stage. I discussed these matters and our common interest in this question of employment, investment and trade with the President of the United States. I have made one or two inquiries. Chrysler, with which 1105 my right hon. Friend the Secretary of State has been corresponding, was mentioned. My clear understanding is that on the company's part there is an undeniable intention to continue its operations in the United Kingdom and a readiness to discuss with the British Government how the continuing efficiency of those operations can be secured.

§ Mr. Heseltine
Can the right hon. Gentleman answer the second half of my hon. Friend's question and say whether the Government are considering legislation which is not currently before the House to deal with the problem of British Leyland?

§ The Prime Minister
The answer is "No, Sir". But, of course, we have not got the report of Sir Don Ryder and his team. They are, as I said, working very vigorously on this problem. I hope that whatever solution they come up with will be capable of being dealt with under existing legislation, including possibly legislation passed by the previous Government. But if legislation were needed to save a major indigenous industry we would not hesitate to bring it before the House.