HC Deb 06 December 1976 vol 922 cc17-8
14. Mr. Nelson

asked the Secretary of State for Industry what is his policy regarding the conclusion of the recent NEDO report that the arm's-length relationship between Government and nationalised industries has failed; and if he will take action to promote greater consensus on and less interference in the management of those industries for which he is responsible.

The Minister of State, Department of Industry (Mr. Gerald Kaufman)

The hon. Member should await the publication of the White Paper mentioned by my right hon. Friend the Prime Minister in reply to a Question by my hon. Friend the Member for Bedwellty (Mr. Kinnock) on 18th November.

Mr. Nelson

Does the hon. Gentleman agree that perhaps the time has come for a new approach to the relationship between Government and nationalised industries? In particular, is it not time to encourage greater autonomy in the industrial management and planning of those industries in return for greater accountability of their performance to Government and other interests?

Mr. Kaufman

I certainly believe it is appropriate for the Government to reexamine their relationship with publicly-owned industries, so that, on the one hand, they can operate effectively as commercial concerns and, on the other, the accountability to Parliament and to the owners of these industries shall be greater. We need to improve on the record of the Tory Party when it was in power.

Mr. Rooker

Will my hon. Friend ensure that a close relationship is maintained between the managers of the nationalised industries and the Government? Far from there being less contact, does my hon. Friend not agree that there ought to be more? Will my hon. Friend confirm that he will not follow the reported comments of Lord Ryder, who apparently said that he will operate the National Enterprise Board only in conjunction with what the Conservative Party will approve? Will he also confirm that he will not operate that procedure in the context of the other nationalised industries?

Mr. Kaufman

I can assure my hon. Friend that the National Enterprise Board has been established to carry out the industrial policies of this Labour Government, as embodied in the manifesto from which the NEB was created. Since the Tory Party voted against the creation of the NEB, its views on the matter are irrelevant.