HC Deb 10 April 1978 vol 947 cc967-8
19. Mr. Ronald Atkins

asked the Secretary of State for Industry what is the total of Government assistance that has been paid to the commercial vehicle manufacturing division of British Leyland.

Mr. Les Huckfield

The public funding of British Leyland has not been allocated by the Government or the NEB to particular operating groups in the way suggested by the hon. Gentleman. It is intended to meet a proportion of the company's overall funding requirements. My right hon. Friend is, of course, required to approve particular investment project costs over £25 million and has already approved two relating to commercial vehicle manufacture: the new assembly hall and the new engineering centre, both at Leyland.

Mr. Atkins

Does my hon. Friend agree that the trading position as regards commercial vehicles is relatively prosperous? However, how long will that situation remain if Japanese cars assembled in Ireland are to be dumped in this country? What action will my hon. Friend take, together with his colleagues in the Department of Trade, to prevent that from happening? Will he take a leaf out of the Japanese book of trading tricks so that we may defend ourselves?

Mr. Huckfield

My hon. Friend is right. The truck and bus group has made a substantial contribution to making British Leyland Britain's largest net exporter. As regards Japanese cars and light vehicles, I can assure my hon. Friend that the understanding we have with the Japanese is that for cars and light vans their exports to us will stay the same as those for last year, and that no direct commercial vehicle imports will come into Britain. We are watching the situation closely.

Mr. Hal Miller

Should not the truck and bus group be treated separately? If it is successful, does it need further public investment? Could it not secure investment from the private sector?

Mr. Huckfield

The hon. Gentleman seems to be suggesting that we should hive off or sell off one of the more successful parts of British Leyland. I am wondering whether that is now the policy of the whole of his party. I remind him that the truck and bus division will be successful, because we have just approved an assembly hall costing £32 million, an engineering centre costing £34 million, a parts division costing £17 million and investment in Bathgate and Albion costing £50 million. These are all investments with public money.