HC Deb 15 January 1979 vol 960 cc1295-8
3. Mr. Hal Miller

asked the Secretary of State for Industry when he expects to place in the Library those parts of the BL corporate plan which can safely be published.

Mr. Varley

I hope to receive British Leyland's 1979 corporate plan, together with the NEB's recommendations, within the next few weeks. When the Government have had time to consider these recommendations, I expect to be able to present to Parliament a report from the NEB as the basis for consideration of any proposals for further public funding of British Leyland. The corporate plan will contain commercially confidential information and will not be published, but I shall consider giving the House as much information as is practicable.

Mr. Miller

Will the Secretary of State, at that time, also report to the House the exent to which the assumptions in the corporate plan have been vitiated by the current disputes? Will he also make plain that approximately half of the work force are in membership of the Transport and General Workers' Union and that their jobs are threatened by the activities of their fellow union members?

Mr. Varley

As I have already said, it is much too early to make an assessment, but by the time we get the corporate plan and have the debate in the House of Commons it might be possible to make some assessment. Over the past few weeks the performance of British Leyland has improved considerably, as I know the hon. Gentleman is willing to acknowledge. But, of course, if there are major disruptions in production in British Leyland, by whatever means, the company will not be able to make the parity payments or to move on the productivity scheme, because all that is related to improved performance.

Mr. George Rodgers

Is my right hon. Friend aware that the ad hoc committee of trade unions involved in the British Leyand enterprise has also produced a plan, which is designed to ensure the future prosperity of the industry? Will he guarantee that that plan is given proper consideration?

Mr. Varley

I am aware of that, and I understand that the British Leyland board is considering the matter.

Mr. Emery

Will the Minister pass on to the management the view that corporate plans should normally be received well ahead of the time at which they would normally come into operation? It is nonsensical for him to receive a corporate plan after the start of the year during which it is to operate, because it then has to be considered, and before any alteration or modification can be made to that plan, and before it can be debated in the House, half the year in question has passed. That is inadequate and is not good planning.

Mr. Varley

There has been no delay in any British Leyland corporate plan. We never envisaged that we would get it before the turn of the year. We expect it in the next few weeks. We shall give the House as much information as we can.

Mr. Litterick

Does my right hon. Friend agree, however, that the basic assumption on maximum output involved in the plan, in so far as we know at present, is far too modest, and that it makes assumptions about further inroads into the British market being made by foreign manufacturers which are justified only so long as we have no trade policy at all? Does he further agree that what we need are a policy of control of imports and, above all, a planning agreement with British Leyland?

Mr. Varley

As I have said to my hon. Friend on previous occasions, as far as I am concerned British Leyland can have a planning agreement whenever it wants one. I hope that it will initiate one as soon as possible.

There is no denying that investment in British Leyland took place last year. About £800 million has been committed to British Leyland. Not a penny has been refused. But if we look at the whole of the motor car industry we see that production last year was down by 6 per cent., though the market was buoyant. That was the time when there should have been some expansion.

Mr. Norman Lamont

Does the Secretary of State remember that in the April debate on the NEB he assured the House that there would be a review of British Leyland in November, and every November? Given that the NEB is supposed to make its own investment decisions, is it not absurd that the House should be asked to vote billions of pounds to the Board this year without first having the review that he promised in April?

Mr. Varley

The hon. Gentleman is anticipating the debate that we shall have on Thursday. He must not generate so much synthetic anger. We shall give information when we have the debate on Thursday. I do not know that any promise that I have made to the House has been dishonoured.

16. Mr. Richard Page

asked the Secretary of State for Industry when he plans to meet the chairman of British Leyland.

Mr. Varley

I meet the chairman of British Leyland frequently.

Mr. Page

When the Minister next meets the chairman of British Leyland, will he congratulate him on the recent improvement in British Leyland's productivity and industrial relations? Will he also urge upon him, in view of British Leyland's ageing design in middle-range vehicles, that some form of evaluation should be carried out with a suitable Continental manufacturer so that its designs can possibly be introduced to this country?

Mr. Varley

I shall certainly pass on the hon. Gentleman's remarks. I know that the product range of British Leyland is a matter of which he is very much aware.

Mr. Ronald Atkins

Will my right hon. Friend assure the chairman that it will continue to be the policy of his Department to buy British cars for the Department, despite the free advertisement given to foreign cars by the Palace?

Mr. Varley

I am afraid that I am at a loss to understand my hon. Friend's question.

Mr. Hal Miller

One of the conditions of the original Chrysler UK rescue was that its operations should be integrated with those of a European manufacturer. Will the Secretary of State tell the House whether he has discussed a similar arrangement with the chairman of BL and whether he thinks that some greater strengthening of the company's European effort is necessary?

Mr. Varley

One factor that British Leyland has very much in mind is how it can collaborate with other producers. For example, a year ago there was some technical collaboration with Renault, but at the moment British Leyland is doing extremely well. Its wage settlement is within the guidelines, as the hon. Gentleman has freely acknowledged before, but it depends on whether between now and the end of 1979 it can produce its own cars and its own model range consistently and regularly. I hope that the events of the last few days will not put British Leyland out of production. There is a danger that if the current dispute takes place in another sector of the economy it could harm British Leyland a great deal.