§ 4. Mr. Durantasked the Secretary of State for Industry when he next expects to meet the chairman of British Leyland.
§ The Secretary of State for Industry (Mr. Eric G. Varley)I meet the chairman of BL frequently. I have no immediate plans to do so at the moment.
§ Mr. DurantDoes the Secretary of State agree with the recent statement by the chairman of British Leyland about BL's industrial record? If so, will he no longer prop up this industry with more State aid, particularly if it is to prop up jobs lost by industrial action?
§ Mr. VarleyI thought that the hon. Gentleman was going to say that the chairman of BL had done a good job since his appointment. In fact, he has. He has not only brought about some stability within the company, but he has organised the divisions much more sensibly and profitability has improved over the past 12 months.
§ Mr. Kenneth ClarkeWill the Secretary of State confirm that, so far as the Government are concerned, an essential part of the Edwardes' plan is that the company should generate a substantial sum—up to £850 million—towards its own investment plans? Will he also confirm that if bad industrial relations destroy the company's capacity to achieve that target there will be no question of unlimited public funds being provided to make good the shortfall?
§ Mr. VarleyBritish Leyland's success will depend upon whether it can produce cars regularly, consistently get them into the showrooms and get people to 5 buy them. That is understood by Mr. Edwardes, this House and the majority of those who work in British Leyland. Mr. Edwardes has had some success over the past 12 months. We have got away from the period of drip-feed of resources for British Leyland and moved to a better equity loan basis. If we get to the situation where the corporate plan justifies more Government finance, we shall make it available.