HC Deb 23 January 1978 vol 942 cc941-2
1. Mr. Kenneth Clarke

asked the Secretary of State for Industry when he next proposes to meet the management of Chrysler UK Limited.

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

I have no immediate plans for a further meeting with the United Kingdom management of Chrysler Corporation.

Mr. Clarke

Has the Secretary of State noticed that in 1977 Chrysler will not have made the £3.4 million profits estimated at the time of the rescue and will not have made the £300,000 profits estimated in the recent planning agreement, but is likely to lose £22 million, of which the British taxpayer will have to find £10 million? Can the Secretary of State at least give an assurance that there is no question of any more public money being given to this company beyond that set out in the existing agreement, and that it is now entirely up to the management and work force of Chrysler to make this a competitive concern?

Mr. Varley

Yes, I can give that assurance.

Mr. Henderson

Is the Secretary of State aware that there is considerable consternation at Linwood over the decision announced last week by Chrysler not to build the new model for 1979 there? Does the Secretary of State recall that in col. 1559 of the Official Report for 17th December 1975 he gave me a direct undertaking that the model for 1979 would be produced at Linwood, and that it was on that basis that my hon. Friends voted for the order?

Mr. Varley

I understand that the model policy of Chrysler UK Limited is being discussed with officials in my Department. Proposals have not yet been put to me, but I hope to be able to say something about it in due course.

Mr. Hal Miller

Will the Secretary of State confirm that the 13-point plan agreed by the company and its unions provided a satisfactory basis on which to go forward, including with the new model?

Mr. Varley

As the hon. Member for Rushcliffe (Mr. Clarke) said, the 1977 proposals have not been fully met, although it was always envisaged that they would be a struggle. The integration of Chrysler's European operations has been reasonably successful, but I hope that there can be improvements. I understand that at Linwood, for example, improvements have taken place over the past few weeks.

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