HC Deb 26 October 1988 vol 139 cc287-9
12. Mr. Hoyle

To ask the Chancellor of the Duchy of Lancaster when he last met the chairmen of British Aerospace and Austin Rover; and what subjects were discussed.

Mr. Newton

Neither my predecessor nor I have met either chairman in recent months.

Mr. Hoyle

Will the Minister arrange a meeting with the chairmen of British Aerospace and Rover to discuss future plant closures? Will he remind them that when the Government sold British Aerospace to Austin Rover at a giveaway price of £150 million it was to produce a British motor industry using British components and providing employment, not to enable British Aerospace to engage in asset-stripping on a grand scale?

Mr. Newton

I know that the hon. Gentleman is a member of the Select Committee that has been examining the matter. I think that, if only as a member of that Committee—which I understand is considering some further interviews—he might well consider it improper were I to respond to some of his questions.

Mr. Grylls

The Labour party is critical of British Aerospace for selling some property which is in excess of its requirements, the proceeds from which it will presumably then use to invest in and improve its business and that of Rover. If Rover were still in the public sector, however, Labour would be calling for more money to be put in by the taxpayer. Is that not typical of Labour's double standards, given that the effect of both would be the same?

Mr. Newton

It must also be said that for everyone discussing the matter the key consideration must be to do everything possible to ensure the long-term viability of all the operations for those who work in them. It is to that that we must direct our main attention.

Mrs. Margaret Ewing

When the right hon. Gentleman meets the chairman of British Aerospace, will he raise with him that company's behaviour towards its subsidiary Royal Ordnance plc, and in particular the closures at Patricroft and Bishopton? Does he not agree that it is ludicrous for the manufacturing industry in this country to be hit in this way again, so that we become dependent on outside suppliers for munitions?

Mr. Newton

I cannot agree with the hon. Lady that plans which I understand are designed to improve the long-term viability and competitiveness of Royal Ordnance are against the interests of those who work in the industry. Obviously there are points of argument about whether such plans work towards that objective, but, as I have said, it is the objective that we should all have in mind.

Sir Hal Miller

I hope that discussions between the Minister and the chairman will be less frequent following privatisation, and that they will be confined largely to matters in which the Government can act, such as the removal of trade and institutional barriers. But may I ask what progress has been made in discussions in Europe about the French threat to ban imports of cars made at Longbridge for Honda?

Mr. Newton

I cannot give my hon. Friend an exact and up-to-date report, but if I may I shall write to him about it.

Mr. Stott

When the Minister next meets the chairman of British Aerospace, will he ask what is his view of the British Airways decision to buy the American Boeing aircraft instead of the European Airbus, in which British Aerospace has a 20 per cent. share and for which the British taxpayer provided a substantial amount in launch-aid? Will he also ask what the decision will do for the long-term job prospects of those employed in the Airbus programme in British Aerospace? Does he not think that British Airways' decision is damaging, unpatriotic and a kick in the teeth for British industry?

Mr. Newton

If I have the opportunity I shall be more than happy to ask the chairman of British Aerospace for his views, but I shall also want to ask the chairman of British Airways for his views and his assessment of the effects on the company of its decisions.

Mr. Speaker

I call Mr. Patrick Thompson, No. 16.

Several Hon. Members

What about No. 13?

Mr. Speaker

Order. I have had notification that No. 13 is not to be asked. I call Mr. Patrick Thompson.

Mr. Madden

rose—

Mr. Skinner

rose—

Mr. Haynes

rose—

Mr. Speaker

Order. I have had notification that Question No. 13 is not to be asked. [Interruption.] Mr. Thompson.