Nationalised Industries

HC Deb 05 April 1976 vol 909 cc9-10

5. Mr. Peter Bottomley

asked the Secretary of State for Industry what measures the Government are considering to improve their relationships with the nationalised industries under his responsibility.

Mr. Varley

The National Economic Development Office is currently carrying out a detailed study of the rôle of the nationalised industries in the economy and of the ways in which they are to be controlled in the future. The Government will publish their views on the NEDO study at the appropriate time.

Mr. Bottomley

Will the Secretary of State tell us whether there are planning agreements with the nationalised industries, and to what extent they have been or will be published?

Mr. Varley

There will be planning agreements with the nationalised industries, and it is certainly the Government's intention to publish them.

Mr. Lane

In view of the low morale in the steel industry, have the Government made clear to the new Chairman of the Corporation that he can rely on the total support of the Government for the Corporation's programme to make the industry competitive and profitable?

Mr. Varley

Of course, the Chairman will get our co-operation. A great deal of work has been done over the last few months. Discussions took place at the turn of the year between the Corporation and unions and an agreement was reached. If that agreement is implemented, there will be improvements.

Mr. Heseltine

How many nationalised industries know the targets they are expected to achieve over any of the next three years?

Mr. Varley

A great deal of work has to be done on this. The nationalised industries' financial targets are in a mess because of the incompetent interference by the previous Administration in the prices structure.

Mr. Edwin Wainwright

When my right hon. Friend has discussions with the chairmen of the nationalised industries, will he ask them to examine their lines of communications with middle management?

Mr. Varley

I agree with my hon. Friend that those at the point of production must know the corporations' plans. The policy of developing industrial democracy and strengthening it, in consultation with the nationalised industries, will contribute to that.