§ 13. Mr. Peter Morrisonasked the Secretary of State for Industry how much money his Department has spent since 28th February 1974 with the express purpose of aiding financially unprofitable industries.
§ Mr. VarleyNone, Sir.
§ Mr. MorrisonWill the right hon. Gentleman state whether it is Government policy not to put any more public money into non-profitable companies, as the Scottish Daily News is apparently not to be bailed out any longer?
§ Mr. VarleyThe hon. Gentleman knows that the attitude taken by the Government in dealing with the kind of case he has mentioned is always to try to ensure that the firm or industry concerned achieves viability.
§ Mr. CrouchIn the light of that last statement by the right hon. Gentleman, what is the objective for the National Enterprise Board under the Industry Bill? Is it to act as a holding company for lame ducks, or to take over the commanding heights of British industry?
§ Mr. VarleyThe aims and objectives of the National Enterprise Board have been fully spelt out, and were set out in the Industry Bill, in this House, but I understand that certain amendments have been proposed in the other place which would, if accepted, prevent the board from getting involved in private sectors of industry. We shall put that right on Wednesday, when the aims of the board will be restored to what they were when the Bill left this House.
§ Mr. LeeWill my right hon. Friend ensure that no more taxpayers' money is put into private industry without our taking effective control over the industries in which it is invested?
§ Mr. VarleyI do not think that I can accept entirely what my hon. Friend has said, as he will realise if he heard my hon. Friend answer earlier questions, about the clothing scheme, the textile scheme and the machine tools scheme. In schemes where money is channelled through the NEB, however, there will be an appropriate stake.
Mr. HeselrineIs the Secretary of State aware that today the second of the NVT companies has called in a receiver? Is he aware that that is precisely what the workers of Small Heath always predicted, following the intervention of the Department? Further, is he aware that what has taken place is completely in contrast with the assurances of his predecessor? Will he now initiate a full inquiry, so that public accountability in this matter may be finally established?
§ Mr. VarleyAs I said before the House went into recess, we take no pleasure from the difficulties of the British motor cycle industry. The hon. Gentleman is not right in trying to attribute to this Government the formation of NVT. The hon. Gentleman will recall that NVT came into existence as a result of intervention by Mr. Christopher Chataway. Mr. Chataway supported the formation of NVT.
§ Mr. VarleyThe hon. Gentleman asks about Meriden, but he has just asked a question about NVT. Our decision, namely, that we could not support further Government funds for NVT, was taken with deep regret. Had there been a possibility of restoring the industry to viability we would have put more money into the undertaking.