HC Deb 19 January 1976 vol 903 cc910-1
16. Mr. Tim Renton

asked the Secretary of State for Industry what consultations he is having with British Leyland regarding its next draw-down of public money.

Mr. Kaufman

My right hon. Friend is kept informed by the National Enterprise Board of British Leyland's general financial position. The Ryder Report recommended that the review of British Leyland's position and progress prior to the first tranche of long-term loan finance should take place in mid-1976.

Mr. Renton

What has the Minister to say about reports in the Press that Leyland is now recruiting further labour? Will he give the House an unconditional assurance that the further tranche of public money will not be drawn down in late 1976 until productivity has improved and some of the export targets set in the Ryder Report have started to be met?

Mr. Kaufman

I cannot comment on Press reports that I have not seen. It is well known that there is a considerable slimming down of the work force in British Leyland. That does not mean that it will not have to take on new employees from time to time, even though that slimming down is taking place. On the hon. Member's second question, I draw his attention to the statement by my right hon. Friend the Prime Minister when he originally announced what the Government would do about British Leyland, and to the more recent statement by Lord Ryder. Both those statements stand.

Mr. Dalyell

On the question of new employees, does my hon. Friend accept that some of us who represent constituencies that contain British Leyland factories would like a sensible age structure preserved in these factories, and that new employees should be taken on more or less as usual?

Mr. Kaufman

This is a matter for the management of British Leyland. My hon. Friend adopts a rational approach to these matters. It is accepted that British Leyland's work force will have to be slimmed down, and this is taking place, but that does not mean that no new recruits will be taken on. There should be a rational approach to these matters, such as my hon. Friend has adopted.

Mr. Heseltine

May I preface my remarks by saying how much the whole House will deeply regret the fact that the Chairman of British Leyland died today?

Why is the Minister unable to reply to the question from my hon. Friend the Member for Mid-Sussex (Mr. Renton) on the question whether recruitment is taking place? Everyone knows that the management of British Leyland has stopped capital investment because losses are running ahead of schedule. Why does the Minister not know about that? The review is not to take place until mid-1976.

Mr. Kaufman

I am grateful to the hon. Member for his opening words.

The hon. Member is highly experienced in industry and he knows very well that often in a situation in which a work force is being slimmed down substantially, new employees have to be taken on in certain sections if the estabishment is to function properly. I am sure that is what the hon. Gentleman wishes to happen. Nevertheless, I reiterate what the Prime Minister and others have said. British Leyland is not a nationalised company. It must operate under its own management, answerable to the National Enterprise Board.