De Lorean Motor Company (Hansard, 25 October 1982)

Mr. J. Enoch Powell (By Private Notice)
asked the Secretary of State for Northern Ireland if he will make a statement on the affairs of the De Lorean Motor Company.

§ The Secretary of State for Northern Ireland (Mr. James Prior)
As I announced on 19 October, as no investor had come forward to take over De Lorean Motor Company Ltd., the receivers were proceeding to a final rundown of the company's Dunmurry plant. I greatly regret the loss of many jobs to Northern Ireland. I understand that in the last few days a number of interests in both the United Kingdom and the United States of America have been in touch with the joint receivers, to explore the possibilities either of purchasing the stock of cars held in Belfast or of acquiring the entire business as a going concern. No detailed proposals have yet been referred by the receivers to the Government. Any such proposals would be considered on their merits.

Mr. Powell
Will the right hon. Gentleman, who has already done so much damage in the Province by his obdurate refusal to take any notice of sound advice and accurate information, give an assurance that, in addition to any inquiries which may be set on foot by Committees of the House, the Government as such will inquire into the eventual destination of the sums of public money which have come into the hands of the company and into any relationship, financial or otherwise, between that company and its chairman and the IRA?

§ Mr. Prior
As soon as the receivers were appointed they were asked to carry out such an investigation into the affairs of the company. I am awaiting their report. They have been trying to resurrect the company in the meanwhile. I have no evidence about the accusations of a connection between the chairman of the company and the IRA. If anyone has evidence of a correct kind—I emphasise the word "correct"—perhaps he will come forward with it.

§ Mr. Clive Soley (Hammersmith, North)
While dealing with a difficult matter, will the Secretary of State join me in congratulating the work force on its significant achievements over the years at the De Lorean plant? Let no one underestimate its achievements because of one man's problems. In 18 months, in an area of mass unemployment, the work force turned a green field site into a factory producing modern cars. No one should lose sight of that fact. Nor should the House lose sight of the importance of supporting the work force in Northern Ireland in an area where the unemployment rate is 35 per cent.

§ Mr. Prior>
Yes, Sir. It was a remarkable feat to have an untrained work force and turn it into a trained work force producing cars within three years of the factory being started. It reflects enormous credit upon the work force, and it is with deep regret that I have to say that we have not been able to find anyone to keep the plant going.

Several Hon. Members
rose—

§ Mr. Speaker
Order. I propose to call two hon. Members from either side, and then to move on to the guillotine business.

§ Sir Philip Goodhart (Beckenham)
Much wrong advice has been given, many wrong decisions have been taken and much public money has been wasted. Surely we should have a full public inquiry.

§ Mr. Prior
The Public Accounts Committee is in any case to investigate what has happened. It is an extremely sorry story. The receiver's report will shortly be made available to the Government. The Cooper Lybrand report has been available, and at times there have been police investigations. There is a great deal of information available, and no doubt there is more to come.

§ Mr. Tom McNally (Stockport, South)
Is the Secretary of State aware that the statement by the spokesman for the official Opposition is almost identical to the unanimous report of the Select Committee on Trade and Industry after it visited Northern Ireland this year? There is a lot of support in the House for the right hon. Gentleman's efforts to get Japanese, American, West German, European and British investment into Northern Ireland, and this one unhappy episode should not be allowed to deflect him from the effort of getting jobs to the people of Northern Ireland.

§ Mr. Prior
Yes, Sir. I agree that nothing should deflect us from trying to get jobs for the people of Northern Ireland. Nor should some exaggerated reports of the state of Northern Ireland be allowed to stop jobs from going there.

§ Mr. James Kilfedder (Down, North)
In view of the heartbreaking number of unemployed people in Northern Ireland, will the Government, despite their experience with De Lorean over the past few years, do all in their power to get a buyer to take over this company, to provide some hope for the people?

§ Mr. Prior
It is important for the people in Northern Ireland, let alone the House, to make certain that projects are proceeded with only when they are seen to be properly viable and there is a chance of success, otherwise Northern Ireland and the House and everything else that we try to do come into disrepute, as in this case.

§ Mr. Dennis Canavan (West Stirlingshire)
Should the Government not learn the simple lesson that when public money is spent on industry the best way to ensure public accountability is through public ownership? In view of the millions of pounds of taxpayers' money that the Government have spent in trying to bail out the De Lorean company, what guarantee have we that the Government will not spend another £3 million of taxpayers' money to bail De Lorean out of gaol?

§ Mr. Prior
No, Sir. I do not believe that many of the hon. Gentleman's hon. Friends will agree with his remarks. He should be a little careful, because it was his Government who started the project.