HC Deb 26 January 1976 vol 904 cc8-9
4. Mr. Hurd

asked the Secretary of State for Industry what directions he has given to the Chairman of the National Enterprise Board about the release of further public funds to the Leyland company.

Mr. Kaufman

As the Ryder team recommended, the release of further funds will be conditional upon the Government and the NEB being satisfied that there has been real progress in productivity and industrial relations.

Mr. Hurd

Does the hon. Gentleman recall that in this month's White Paper the Government promised to give the House the targets of achievement that will have to be met by British Leyland before further Government funds are released? Will he define the first of those targets of achievement and the date by which it will have to be met?

Mr. Kaufman

The first of those targets will have to be met by the middle of this year, when there will have to be a review point for the next injection of finance. We shall have to get much nearer that period before we decide how matters are progressing.

Mr. R. C. Mitchell

Leaving aside British Leyland and Chrysler, have the Government received requests from any other leading motor manufacturing companies for allocations of public funds?

Mr. Kaufman

No, Sir.

Mr. Heseltine

Does the Minister understand that British Leyland has conducted such a review in consequence of which it has stopped capital investment in the car plant because the schedules are not being maintained for the anticipated programme?

Mr. Kaufman

The hon. Gentleman always jumps to early conclusions. My right hon. Friend the Prime Minister and Lord Ryder laid down the conditions upon which any future tranches will be forthcoming. Those conditions were fully stated in my right hon. Friend's statement nine months ago. It is not satisfactory that, six months before the review term, hon. Gentlemen opposite, some of whom have British Leyland workers in their constituencies, should decide whether the conditions have been met.

Mr. Rooker

Has my hon. Friend ever heard of management by objectives? How can the management and work force of British Leyland be expected to perform without the objectives being stated?

Mr. Kaufman

The objectives were laid down by my right hon. Friend the Prime Minister in his statement. I am prepared to send a copy of that statement to any hon. Member who wishes to have it. Those objectives deal with productivity, reductions in the number of industrial disputes, and the improvement of industrial relations. The progress already made in forming a framework for participation by the workers is in advance of anything so far achieved in any other sector of British industry.