HC Deb 20 October 1975 vol 898 cc19-21
21. Mr. Giles Shaw

asked the Secretary of State for Industry if he will make a statement on his Department's reactions to the Expenditure Committee's report on the Government's plans for British Leyland.

Mr. Varley

The report on the motor vehicle industry by the Trade and Industry Sub-Committee of the Expenditure Committee is being carefully considered and a response to the recommendations and comments on the Government's plan for British Leyland will be made as part of the reply to the whole report.

Mr. Shaw

I thank the Secretary of State for that holding reply. Will he give some idea of the return which he expects the Government to enjoy as the result of earmarking a considerable amount of taxpayers' money for this project?

Mr. Varley

That is a question properly for the new board of British Leyland and for the National Enterprise Board.

Mr. Maxwell-Hyslop

When does the Minister expect the Government's reply to the Expenditure Committee to be available? Does he not agree that it should be made available before the House can debate the report? How long are we to wait, because the report was timely and events are moving fast?

Mr. Varley

I cannot be precise, because the Government are considering a whole range of matters—matters affecting not only British Leyland but the motor vehicle industry in general. I hope that the reply will be available as soon as possible.

Mr. Hal Miller

Will the Secretary of State give an assurance that public funds given to British Leyland will not be used to acquire private component manufacturers in the West Midlands? Is he aware that this matter is already causing a great deal of anxiety?

Mr. Varley

If the hon. Gentleman has in mind specific projects which he thinks are threatened, I shall be pleased if he will supply me with that information. I hope that the House will accept that British Leyland and its board will be responsible for the conduct of business and that its activities will be connected with the National Enterprise Board. I do not want to get involved in day-to-day decisions of British Leyland.

Mr. Heseltine

When the right hon. Gentleman says that return on capital will be a matter for the British Leyland board, surely he is forgetting that the Government are responsible for deciding whether to invest money. What do the Government consider should be the standard rate of return on projects put up by British Leyland?

Mr. Varley

We have already made it plain—certainly my right hon. Friend the Prime Minister has made it plain recently—that the progress of capital development and the injection of Government finance should be staged. Each stage will depend on the evidence of some tangible contribution, and the company's work force and management must get together to ensure that there is an improvement in performance and industrial relations. We shall have to be satisfied on that score. The return on capital and other matters must surely be left to the British Leyland board—[Interruption.]—and also to the National Enterprise Board. We are convinced that British Leyland will be a success. I hope that the whole House, including the Opposition, will ensure that we do everything possible to ensure viability.