HC Deb 15 January 1979 vol 960 cc1305-6
9. Mr. Cryer

asked the Secretary of State for Industry how many directions under section 3 of the Industry Act 1975 he has issued.

Mr. Varley

Two, Sir.

Mr. Cryer

Does my right hon. Friend accept that hon. Members on the Government Benches, at any rate, understand and appreciate the hundreds of thousands of jobs which the NEB has saved? But will my right hon. Friend agree that sometimes the issuing of directions is necessary because the legislation was passed with the object in mind of stopping the NEB fom drifting towards merchant bank status. as some of the disturbing revelations that we have heard this afternoon appear to indicate is happening? Will my right hon. Friend give an assurance that he will be prepared to give directions where the NEB is faced with the opportunity of helping, for instance, workers' co-operatives, which are a rather superior form of organisation to those headed by Sir Richard Marsh?

Mr. Varley

My hon. Friend knows that it is a misrepresentation to suggest that the NEB is some sort of company akin to a company wholly within the private sector. That is not true and, although perhaps my hon. Friend did not imply that, to give that impression does no service to those who serve on the NEB. As for KME, I do not know how far I need go over the ground, because my hon. Friend is very familiar with it. Some £5 million has been provided to that workers' co-operative in temporary employment subsidy and regional development grants. The working party was set up at its suggestion. It agreed to abide by the recommendations of the working party and then, of course, found that it could not. Incidentally, KME was closed all last week and I understand that it is closed today not as the result of any action by the Government but as the result of some industrial action by the Transport and General Workers' Union.

Mr. Kenneth Clarke

Does the right hon. Gentleman's reply mean that KME's application for a further £6 million of public funds has been rejected?

Mr. Varley

It does not mean that at all. All that it means is that the application is before the Department and that, in accordance with the procedures under the 1972 Industry Act, it is being considered.