British Leyland

HC Deb 22 February 1982 vol 18 cc576-8

7. Mr. Beaumont-Dark

asked the Secretary of State for Industry if he is satisfied with the productivity improvements at British Leyland over the last year.

Mr. Patrick Jenkin

Productivity improved last year by 30 per cent. at BL Cars' plants overall and by over 100 per cent. at the Longbridge plant. This is encouraging progress, which reflects credit on all concerned. There is some way to go, however, before the company as a whole becomes internationally competitive.

Mr. Beaumont-Dark

Is my right hon. Friend aware that this news will be very welcome to all of us who wish to see BL prosper and that great credit is due to the workers and management of BL? However, did my right hon. Friend read the speech by Sir Michael Edwardes on Friday in which he said that he expected British Leyland to buy steel from overseas? Bearing in mind that both BL and the BSC are subsidised to the tune of billions of pounds by taxpayers, would it not be the economics of bedlam for British Leyland to buy steel at the cost of other people's jobs and to improve its productivity at other people's expense?

Mr. Jenkin

I know that the chairman of BL is in touch with British Steel about steel supplies. Equally, I know that there is no future for any British industry that thinks that it can build on subsidised steel. The advantage of the present system under the Treaty of Paris arrangements is that Europe is now returning its steel industries to profitability on a collaborative basis, which will ensure the long-term supply of steel at economic prices to our engineering industries.

Mr. McNamara

By what figure has the number of people employed by BL fallen in the past two years, and what estimate does the right hon. Gentleman make for next year?

Mr. Jenkin

If the hon. Gentleman cares to put down a question on that matter, I shall do my best to answer it.

Mr. Hal Miller

Will my right hon. Friend say whether the effects on the welcome improvement in productivity at BL of any proposal by Nissan to establish itself in this country have been studied by his Department, and will he take account of such effects when coming to a decision on the Nissan project?

Mr. Jenkin

There is a later question on the Order Paper about Nissan. All I say at this stage is that we have had useful discussions with the representatives of Nissan. Of course, in considering this matter the Government are bound to have regard, and are having regard, to the overall impact that a major new investment of this kind will have upon the economy generally and upon the vehicle sector in particular. We have to be satisfied that such a project coming to this country will be in the overall interests of the country.

Mr. Orme

Returning to the important question asked by the hon. Member for Birmingham, Selly Oak (Mr. Beaumont-Dark) about purchases of British steel, is the right hon. Gentleman aware that British Steel is one of the largest purchasers of BL vehicles? Therefore, should not BL be ordering British steel? Is that not a "Buy British" policy which should be supported by the Government?

Mr. Jenkin

The right hon. Gentleman knows, because he has had responsibility for these matters, that purchases are matters for the commercial decisions of the managements of the companies concerned. I took great encouragement from the Opinion Research Centre poll in Bathgate at Leyland. That showed that, overwhelmingly, British Leyland employees do not wish to go on living on Government subsidies. They believe it is right that the company should become competitive and profitable in its own right. That must be right for steel as it is for cars.