HC Deb 28 June 1976 vol 914 cc7-8
5. Mr. Moonman

asked the Secretary of State for Industry what recent consultations he has had with the board of Chrysler United Kingdom Limited.

Mr. Varley

My Department is involved in continuing discussions with members of the Board of Chrysler United Kingdom. I shall myself meet the chairman of the company at appropriate intervals to discuss progress.

Mr. Moonman

Have the Government been thrown off course in their long-term strategy with the company by the fact that half the components it uses will not be manufactured in this country for at least another nine months, thereby encouraging a large import bill in connection with the Alpine?

Mr. Varley

The Alpine is only a part of the operations of Chrysler United Kingdom. The company intends to build up production over a period and to manufacture all components for that car in this country. I shall certainly be encouraging it to do so.

Mr. Hal Miller

Will the Secretary of State say whether, in his Department's frequent consultations with the company, the company has raised the idea of scrapping the road fund licence and increasing the duty on petrol, and the effect that this would have on sales of British-made cars?

Mr. Varley

I have nothing to add to what my right hon. Friend the Chancellor of the Exchequer said during his Budget speech. The abolition of the vehicle excise duty was considered at that time and rejected.

Mr. Clemitson

Will my right hon. Friend use his good offices to ensure that the commercial division of Chrysler, which everyone has always acknowledged to be a viable part of the enterprise, gets essential components, in particular at present the frames and other similar components from Rubery Owen and—this is a longer-term problem—adequate supplies of diesel engines from Perkins?

Mr. Varley

I do not have detailed information on the points raised by my hon. Friend, but I will see that his comments are passed to the company.

Mr. Litterick

Is my right hon. Friend satisfied that his Department is sufficiently well staffed effectively to monitor the details of the operations of companies like Chrysler into which large sums of public money are invested to ensure that the investment is in British productive resources?

Mr. Varley

We get monthly and quarterly information about Chrysler within the Department. The monitoring is assisted by Coopers and Lybrand. The information provides data on sales, production, exports, capital expenditure and financial performance necessary to enable the Government to follow Chrysler's progress. If additional information is required, I shall see that we obtain it.

Mr. Tom King

Will the right hon. Gentleman answer the question put by my hon. Friend the Member for Henley (Mr. Heseltine) concerning his Department's assessment of the impact on likely investment of the 2½ per cent. increase in borrowing rates? What modifications has the Department made also in its assessments following the change in the exchange rate, and particularly the effect that that will have on the sourcing of components, in connection with Chrysler and the Iranian contract?

Mr. Varley

I cannot answer those questions without notice.