HC Deb 25 March 1982 vol 20 cc1071-2
1. Mr. Michael McNair-Wilson

asked the Secretary of State for Northern Ireland if he will make a further statement about the progress of the work of the receiver of the De Lorean Motor Company.

The Minister of State, Northern Ireland Office (Mr. Adam Butler)

I understand that the receivers and managers of De Lorean Motor Cars Limited have continued limited production at the plant in Dunmurry and have pursued their discussions with parties who have exhibited interest in the business with a view to selling it as a going concern.

Mr. McNair-Wilson

In the absence of a sale by Sir Kenneth Cork to any other concern, how long will the funds currently in the company continue to pay the wages bill and other operating costs?

Mr. Butler

My hon. Friend knows that the receiver has particular responsibilities towards the creditors and that it is up to him to decide how long to continue the operation at its present level of activity. I assure my hon. Friend and the House that there is genuine interest at the moment in the purchase of the company, which Sir Kenneth Cork and Mr. Shewell, as receiver managers, continue to pursue.

Mr. Cryer

Will the Minister use his powers to ensure that the company and assets are not sold to any of these interested parties at any knock-down price, and ensure that the assets stay in Northern Ireland in order to preserve jobs? Will he, in view of the controversial record of Mr. John de Lorean, look particularly carefully at any application by a company involving Mr. de Lorean and its advisers or board?

Mr. Butler

Clearly, it is in the interests of those in Northern Ireland that the plant should continue there and provide employment. Particular points on potential purchasers are very much matters for the receiver.

Mr. Concannon

Is it still the Government's view that this car is a good product? Is not the best way out of this dilemma to sell the car? Do the Government believe that if we harm the individual that harms the product and, once the product is harmed that much, that leads to the closure of the factory and those employed there will fight like mad for redundancy payments.

Mr. Butler

It is established that the car is a good product. It is also established that the factory and work force at Dunmurry are capable of producing the car. What matters is whether the car can be sold at a price that results in a volume sufficient to allow the plant to operate profitably. Any potential buyer must make that assessment on the available evidence.