HC Deb 01 March 1976 vol 906 cc892-5
4. Mr. Stonehouse

asked the Secretary of State for Industry what are the total grants, loans and subsidies he has made to the car industry; and what is his estimate of the number of jobs in the industry saved by this support, and the cost per job.

Mr. Varley

Most of the financial assistance to the car industry is being made available to British Leyland and Chrysler. So far, £200 million has been invested in new equity in British Leyland and £18 million has been paid to Chrysler to meet losses in 1976, and these funds relate to all the activities of the two companies. It is difficult to estimate precisely how many jobs have been saved overall, but the employment of many hundreds of thousands depends on the car industry, particularly in the West Midlands.

Mr. Storehouse

Does my right hon. Friend expect a financial return on this investment, and, if so, when?

Mr. Varley

As my right hon. Friend knows, there are risks involved in all these cases, and these risks have never been denied. I know that my right hon. Friend will have been pleased to see the latest results achieved by British Leyland. It has much better opportunities than hitherto and it is the largest single market holder in the United Kingdom. In addition, its exports are doing well, particularly its commercial vehicles.

As for Chrysler, I hope that the integration that will take place within Chrysler's world-wide operation will provide new prospects there.

Mr. Tebbit

Is the hon. Gentleman sure that all the Ministers in the Cabinet know what is going on? If so, is it not odd that the Secretary of State for the Environment is slashing expenditure on roads for these motor cars to be driven on, and is helping the GLC to stop people from driving their motor cars into London? Is not that an odd way to run a policy?

Mr. Varley

All my Cabinet colleagues know what is going on within the Department of Industry, because I make it known to them from time to time. I am sure that the House will have noted the hon. Gentleman's comments, and particularly that, as I understand it, although the Conservative Party is in favour of public expenditure restrictions immediately, when it comes to a particular policy—such as the road policy—the hon. Gentleman wants to go ahead and increase it.

6. Mr. Tom King

asked the Secretary of State for Industry what recent discussions have taken place with representatives of the industry regarding the provision of further assistance to the motor industry.

Mr. Varley

My Department has been approached by a group of business men seeking support for their proposal to acquire Jensen Motors Limited from the receiver.

Mr. King

Will the right hon. Gentleman confirm that, in addition to that additional request for support, he has met the latest recruit to representatives of the motor industry, in the shape of the new Chairman of British Leyland, Sir Richard Dobson? Will he say whether that appointment has his support?

Mr. Varley

I have not had an opportunity so far to meet Sir Richard Dobson, but I hope to do so shortly, with other members of the British Leyland board. Of course his appointment has my support.

Mr. Freud

As the Secretary of State seems to accept over-capacity in the motor car industry, what plans has he to ensure that firms receiving public assistance accept public accountability?

Mr. Varley

The motor car industry not only comes under the scrutiny of the House; it is scrutinised by the Trade and Industry Sub-Committee, and from time to time I know that hon. Members will take the opportunity, through the Public Accounts Committee, to obtain further information.

Mr. Moonman

Is it a fact that in these discussions my right hon. Friend has taken account of the more successful end of the market—namely, Ford? Has he begun the monitoring arrangements with the other motor companies on the way in which they are using our resources?

Mr. Varley

My hon. Friend has a Question later on the Order Paper, which I hope will be reached if we make good progress. The high-level tripartite group has already had a very useful discussion, and further meetings are planned.

Mr. Heseltine

Will the Secretary of State confirm that he has not met the man who has been appointed responsible for the largest single investment ever made in a company in this country? Is it not incredible that he should not take the trouble to discuss the future of that industry with the chairman and discover the chairman's attitude? Does it not come as an incredible revelation, from a Government who say that they believe in accountability and that they have responsibility for the fortunes of this industry, that the Secretary of State has not even taken the trouble to meet the chairman-designate of that company?

Mr. Varley

The hon. Gentleman is making very heavy weather of the issue. Sir Richard Dobson was appointed by British Leyland itself, after consultation with the National Enterprise Board. If it is any consolation to the hon. Gentleman, I can tell him that Sir Richard Dobson was seen by the Prime Minister. In normal circumstances I would have been there, but I had an important prior engagement.

Forward to