HC Deb 13 November 1978 vol 958 cc7-9
8. Mr. Hal Miller

asked the Secretary of State for Industry if he will make a statement on the British Leyland car plan and any further public funding that may be required to fulfil the plan.

Mr. Varley

I expect to receive BL's updated corporate plan from the National Enterprise Board before the end of the year. The question of further public funding for BL will be considered in the light of the Government's review of the plan and the recommendations of the NEB.

Mr. Miller

Will the Secretary of State confirm his earlier undertaking to the House that he will be making a statement when he gets that plan? Will he also take this opportunity to confirm that, contrary to impressions in some quarters of the House, the chairman has withheld the investment fund until the resolution of some of the difficulties confronting the company?

Mr. Varley

I confirm that I shall make available as much information as possible about the corporate plan after the Government have had a chance to review the National Enterprise Board's recommendations, and we shall do that early in the new year.

It is true that British Leyland management has withheld some investment as a result of some industrial disputes which have taken place over the past few months.

Mr. Hooley

Will the corporate plan result in any disengagement of British Leyland's interests in South Africa?

Mr. Varley

I do not know. If the recommendations by BL to the NEB are endorsed by the board and come to the Government, we shall have to consider them. I have no precise information on the lines of my hon. Friend's question.

Mr. Litterick

Will my right hon. Friend tell the House when—and, indeed, if—he proposes to conclude a planning agreement with the management of British Leyland?

Mr. Varley

It has been on the stocks for some time now. As I have already indicated, there are encouraging signs from British Leyland about its share of the market. Indeed, there has been an improvement in profitability, but the great disappointment from my point of view is that worker participation in British Leyland has not taken off in any sense. There has been some involvement at some plants, but involvement at other plants has been disregarded. I want to see not only a planning agreement but progress towards industrial democracy inside British Leyland.