§ 2. Mr. Beaumont-Darkasked the Secretary of State for Trade and Industry if he has had any recent representations from British Leyland about the funding of future car models.
§ The Minister of State, Department of Trade and Industry (Mr. Norman Lamont)BL's 1985 corporate plan, which I have just received, deals with a number of matters, including the company's model strategy and proposals as to the funding of that strategy from non-Government sources.
§ Mr. Beaumont-DarkWill my hon. Friend accept that British Leyland has done very well over the past few years, after a difficult spell in labour relations? Now that British Leyland is well founded, will the majority shareholder — the taxpayers, represented by the Government —assure us that we intend to keep a genuine British manufacturer of cars and that we shall not have merely an assembler of Japanese models? That way lies the strength and future of the British motor industry.
§ Mr. LamontThat is certainly the intention of the Government's policy, and that is why we have supported British Leyland. As my hon. Friend knows, in the end it must be up to the management and all who work at British Leyland to continue the great progress and to make themselves into a truly competitive British manufacturer.
§ Mr. SkinnerIs it not another example of voodoo economics for the Government to give the Nissan car company £200 million of taxpayers' money to set up a factory in the north-east and to try to run down British Leyland at the same time? Nissan will provide possibly 500 jobs at a subsidy of £400,000 for every man and woman employed. If we got that in the mining industry, we would be sailing freely.
§ Mr. LamontI am not sure about voodoo economics, but the hon. Gentleman cannot add up if he thinks that that is the assistance that we have given to Nissan. He has a slightly exaggerated view. The Nissan project will not reach full production until 1991, and by then Austin Rover either will, or will not, be fully competitive.
§ Mr. Roger KingDoes my hon. Friend appreciate that for the company to arrange funding for new model development it is essential to have good strong home and export markets? Does he realise that the problems that the company faces with regard to Spain, in particular, have precluded sales in quantity to that country?
§ Mr. LamontMy hon. Friend will know that my right hon. Friend the Minister for Trade is today answering a 279 written question detailing the arrangements that will come into force with Spain, and which we hope will lead to an improvement in the situation.
Mr. John Mark TaylorDoes my hon. Friend have any plans for further reducing the Government's equity ownership in the British Leyland group?
§ Mr. LamontIt has been stated on many occasions that it is the Government's policy to want all the constituent parts of British Leyland to be returned to private ownership.