HC Deb 18 July 1977 vol 935 cc1118-20
2. Mr. Dykes

asked the Secretary of State for Industry if he will make a statement on the recent announcement of board changes at the National Enterprise Board; and whether he expects such changes to produce any split in operational policies.

12. Mr. Neubert

asked the Secretary of State for Industry when he last met the Chairman of the National Enterprise Board.

The Secretary of State for Industry (Mr. Eric G. Varley)

I last met the Chairman of the National Enterprise Board on 6th July. I have nothing more to add, as far as board changes at the NEB are concerned, to the reply my hon. Friend gave the hon. Member for Christchurch and Lymington (Mr. Adley) on 7th July. Operational policies are primarily a matter for the Board.

Mr. Dykes

Does the right hon. Gentleman agree that the NEB has been completely swamped by its involvement in British Leyland and the excessive political interference which has bedevilled the NEB's activities since it started? Does he feel that the rest of the work that the NEB is doing is worth while? How many new projects is it likely to take on in the next six months and what is its central strategy, apart from trying to rescue the Government and British Leyland at the same time?

Mr. Varley

I do not agree that the NEB's work or involvement with British Leyland has swamped its other activities. In 18 months it has made a very good start. As for political interference, the NEB has full operational freedom in accordance with the guidelines which have been fully debated in the House.

Mr. Neubert

In view of the Chancellor of the Exchequer's undertaking last Friday to contain wage settlements in the public sector, what influence will the NEB have in this field, and has the Secretary of State issued directions on how this might be exercised?

Mr. Varley

I have not issued directions to the NEB as regards wages policy, but the NEB and other public corporations will understand the Government's views on this matter.

Mr. James Lamond

Does my right hon. Friend recall that the report on the NEB's first 18 months of operation contained many success stories, including that of Ferranti, in my constituency? Is he aware that the activity of the NEB saved a great many jobs?

Mr. Varley

That is certainly true. I do not think that it has gone unnoticed by those who work for Ferranti or many of the other companies where the NEB has been involved, such as ICL, Twin-lock, Sinclair Radionics and others.

Mr. Norman Lamont

Has the Secretary of State studied the evidence of the Treasury to the Wilson Committee suggesting that there is no shortage of finance for British industry but that the trouble is the hostile attitude in this country towards British industry? Does not that remove one of the main arguments for the NEB? Should not Mr. Murphy therefore be given a rather more limited task of making no more invest- ments and simply to see whether he can sell off at a profit investments that it already has?

Mr. Varley

I do not agree. I have not yet studied the evidence of the Treasury to the NEB. It is the Government's view that the NEB will have not only a continuing but an expanding rôle.