HC Deb 30 October 1975 vol 898 cc1750-2
Q2. Mr Rifkind

asked the Prime Minister whether he will pay an official visit to the West of Scotland.

The Prime Minister

I refer the hon. Member to the reply which I gave to the hon. Member for Glasgow, Cathcart (Mr. Taylor) on 28th October, Sir.

Mr. Rifkind

Is the Prime Minister aware that the Chrysler Linwood factory, which provides 6,500 jobs, is in the West of Scotland? Is he further aware that throughout the United Kingdom more than 25,000 jobs might be put in jeopardy if Chrysler decided to move out of the United Kingdom? Will he inform the House what representations the Government are making to try to prevent what would be, on any calculation, a devastating blow to employment prospects if the company were to move out?

The Prime Minister

The hon. Gentleman has not exaggerated the seriousness of any possible move of that kind. It has been known for some time that the financial situation of Chrysler (UK) has been causing anxiety. The Government, including myself, in meetings with the Detroit heads, have been in continual touch with the corporation, and we were given assurances by the corporation in line with the assurances previously given on the occasion of the merger with Rootes in 1968. My right hon. Friend the Secretary of State for Industry has written to Mr. Riccardo, Chairman of the Chrysler Corporation, asking for a full appraisal of the situation. I understand that the corporation had in any event intended to have discussion with my right hon. Friend in the very near future. I have informed myself very fully of the situation so far as the discussions with Chrysler are concerned. No decision has been taken. I can give the House an assurance that my right hon. Friend the Secretary of State for Industry and I would expect to meet the corporation before any decision affecting Chrysler (UK) was taken. I can give the House the firm assurance that at this stage it is too early to speculate as to what that decision might be.

Mr. Les Huckfield

May I, on behalf of my constituents, thank my right hon. Friend for the reply that he has just given? Is he aware that to those who represent other constituencies, apart from those in Scotland, the announcement by the Chairman of Chrysler Corporation also represents a serious situation? Does he agree that this is a complex situation, including the factors of model ranges, market capacity, and a whole range of other problems? Is he able to give the House more information about the undertaking that he personally was given in connection with the Chrysler Corporation when he visited America earlier this year?

The Prime Minister

As far as I am aware, no decision has been announced. I think that some phrases have been used in the United States, but I do not regard them as a decision and I have confirmed that that is true equally of Chrysler International.

I agree with my hon. Friend. There are many problems here with model ranges and so on. Concerned as he and I are with his constituents and with those of the hon. Member for Edinburgh, Pentlands (Mr. Rifkind) and others, let me say in reply that this afternoon my right hon. Friend the Secretary of State for Industry will be meeting a number of my hon. Friends who are involved with Chrysler, and he wanted me to say particularly that if any hon. Member in any part of the House wishes to have a meeting with him about the anxieties over Chrysler, he will be glad to arrange that at the earliest possible moment.

There are other problems, and my hon. Friend is aware of these from his constituency, as is the hon. Member for Pentlands. There is also the question, from the point of view of our exports, of the enormous programme of shipments to Iran from Chrysler (UK) Limited, and in anything that is discussed we shall all be concerned with maintaining that flow of exports.

Mr. Buchan

rose—

Mr. Speaker

The next Question is No. 4.

Mr. Buchan

On a point of order, Mr. Speaker. As mine is the constituency under discussion, I had hoped to be called to ask a question.

Mr. Speaker

If the hon. Member bides his time, he may get a chance to do so.