HC Deb 12 February 1986 vol 91 cc952-4
20. Mr. Heathcoat-Amory

asked the Secretary of State for Trade and Industry if he has any plans to privatise the Land Rover division of British Leyland; and if he will make a statement.

Mr. Peter Morrison

Discussions are in progress between BL and General Motors with the aim of creating an internationally competitive United Kingdom commercial vehicle industry. These talks cover Leyland Trucks, Land Rover, Freight Rover and certain related overseas companies.

Mr. Heathcoat-Amory

As Jaguar has flourished in the private sector, why has my hon. Friend not pursued a similar course with Land Rover? What can Land Rover gain from General Motors that could not be achieved by privatisation in a British market?

Mr. Morrison

Obviously my right hon. Friend and I and the whole of the BL board must carefully take into account the prospects for the future of Land Rover when it goes into the hands of the private sector. The board believes that the prospects for Land Rover and Range Rover will be greatly enhanced if, subject to the conditions that my right hon. Friend announced in the House last week, they team up with General Motors.

Mr. Terry Davis

As no one in the senior management of British Leyland will admit to being involved in the discussions, will the Minister name the members of the BL board who are involved in trying to sell off the British motor industry?

Mr. Morrison

I am amazed at that question. I do not know the names of all the people involved. There have been negotiations at many levels—technical, commercial and industrial. Several people have been involved in the negotiations across the board.

21. Mr. John Mark Taylor

asked the Secretary of State for Trade and Industry if he will make a statement about negotiations taking place between General Motors and Leyland Truck and the involvement of Land Rover.

Mr. Peter Morrison

Discussions are in progress between BL and General Motors with the aim of creating an internationally competitive United Kingdom commercial vehicle industry.

Mr. Taylor

As my hon. Friend is considering the options, will he include among them a management buyout and accept the importance of a significant involvement of employees of the company in that scheme?

Mr. Morrison

That will initially be a matter for the BL board. Certainly as regards the future of Land Rover and Range Rover, it is important that any deal that they come to is a deal that they and the Government consider to be the best for enhancing their prospects and the prospects of my hon. Friend's constituency and the thousands of his constituents who work there.

Mr. Geoffrey Robinson

Has General Motors made the inclusion of the Land Rover division of British Leyland a condition of its acquisition of that division? If not, why will the hon. Gentleman not listen to the views of the management and unions at Land Rover and to the view of both sides of the House and consider a future for Land Rover outside the deal with General Motors?

Mr. Morrison

At this stage, General Motors has not put forward any formal proposition. It would be fair to say that General Motors is looking at the three constituent parts about which I have already told the House.