HC Deb 07 December 1981 vol 14 cc571-2
10. Mr. Canavan

asked the Secretary of State for Industry whether he will meet the chairman of British Leyland to discuss his plans for investment and employment.

Mr. Patrick Jenkin

I meet the chairman of BL whenever the need arises. We discuss a variety of topics.

Mr. Canavan

In view of the points raised last week by my hon. Friend the Member for West Lothian (Mr. Dalyell), may we have an assurance that the Department of Industry will make available to the Comptroller and Auditor General any documents that he requires during his inquiry into the proposed sale of the British Leyland tractor line at Bathgate to private interests? Is it not also about time that the Secretary of State told Sir Michael Edwardes to stop such senseless public asset stripping, which will destroy the jobs of 900 British Leyland workers?

Mr. Jenkin

I have read the speech of the hon. Member for West Lothian (Mr. Dalyell), who is not in the Chamber at the moment. He was very free with allegations of impropriety, when he variously referred to British Leyland's action as a "rip-off", "commercial treachery" and spoke of management having their snouts in the trough. I strongly deprecate such language about what is a straight commercial decision by British Leyland. However, I can tell the hon. Gentleman that if the Comptroller and Auditor General or any other House authority wishes to investigate the matter on a normal basis, I and my Department shall co-operate fully.

Mr. Stokes

Is not the main task of British Leyland today to make as many good cars as it can without any interruption of production by strikes or any other means? When that has been accomplished, surely the time will be right for further investment, as it will have the confidence of both customers and dealers.

Mr. Jenkin

My hon. Friend is absolutely right. We are pleased that the company and its employees have found a solution to the dispute at Longbridge and that the production of cars started again this morning.

Mr. Orme

Is the Secretary of State aware that one reason for the cuts in the truck and bus division of British Leyland, leading to widespread redundancies in Scotland, Preston and Wolverhampton, is the cuts in public expenditure, not least to local authorities? Is he further aware that the Government's policy has a lot to answer for in that regard?

Mr. Jenkin

The right hon. Gentleman really could not be more wrong. He cannot have heard what my right hon. and learned Friend the Chancellor of the Exchequer said on Wednesday. Expenditure by local authorities has consistently exceeded the targets set by the Government. In his announcement about next year, about £1.3 billion of the £5 billion extra expenditure is accounted for by local authorities. The reason for the British Leyland cutback is that the market for trucks weighing over 3½ tonnes has halved from 80,000 to 40,000. The demand for buses and coaches has fallen by 35 per cent. In those circumstances the company has decided—as a commercial matter—that it must check its manufacturing base so that that part of the business can remain viable and become profitable. That is a decision for the company management, and I do not intend to intervene.