HC Deb 25 October 1982 vol 29 cc717-8
2. Sir William van Straubenzee

asked the Secretary of State for Industry whether he has yet made a decision as to a successor to Sir Michael Edwardes as chairman of British Leyland.

The Under-Secretary of State for Industry (Mr. John Butcher)

British Leyland announced on 31 August that Sir Austin Bide would become non-executive chairman of BL on 8 November. This appointment, which was made by the BL board, was approved by my right hon. Friend the Secretary of State, as provided in the memorandum of understanding between the Government and the company.

Sir William van Straubenzee

Does my hon. Friend agree that this is an encouraging appointment? Does he have it in mind to give any assistance to the work of Sir Michael's successor in terms of the operations of at least one European non-EEC country that is imposing very high tariffs in respect of its internal car production, which is resulting in unfair competition?

Mr. Butcher

I am sure that Sir Austin will need very little help in his executive capacity, as he already knows his way around the City and Whitehall, and he has been a member of the BL board for some time. My hon. Friend also hinted at a very controversial point. We view with great misgiving the imbalance in trading arrangements between Spain and Britain and we look forward to some sharp action, with the Commission taking into account the views expressed by my hon. Friend on previous public occasions.

Mr. Orme

Will the Minister give an assurance that the appointment of Sir Austin will not lead to the privatisation of BL? Is he aware that morale has been built up in BL and any move towards privatisation and breaking up the company, which is now based on a heavy input of taxpayers' money, would be disastrous for the company?

Mr. Butcher

BL consciously moved from having one executive chairman to having a part-time chairman and two group chief executives operating major separate business units. We regard that new structure as a means towards the earlier introduction of private capital and, in due course, denationalisation—or rather, the full introduction of majority shareholding from the private sector.

Mr. Major

The appointment is most welcome, but can my hon. Friend assure us that Sir Austin will show more tact and diplomacy than the Liberal canvassers who arrived at the BL Longbridge plant in Mercedes cars, and would he care to speculate on the sort of reception that they received?

Mr. Butcher

That is certainly a moot point. I believe that there is a clear duty upon those who advocate a "Buy British" policy and claim to represent British interests to pursue that line of thought in their own buying habits.

Mr. Golding

In considering this matter, will the Minister take account of the many thousands of unemployed people in the Birmingham, Northfield constituency who have experience in that industry and are desperately seeking work in an area devastated by the Government's economic policies?

Mr. Butcher

Having fought the Northfield constituency myself in 1974—[HON. MEMBERS: "What was the result?"] Unfortunately, Northfield fought back on that occasion—I, too, am aware of, and sympathise with, the feelings of Northfield workers, but if they benefit from Sir Austin's management capabilities as his Glaxo employees did, their job prospects will be enhanced.

Several Hon. Members rose

—

Mr. Speaker

Order. The question of BL will come up again later.