HC Deb 20 November 1997 vol 301 cc445-6
11 Mr. Nicholas Winterton

If she will make a statement on her Department's policy on the ownership of the Rolls-Royce motor car company. [15400]

Mr. Battle

The sale of the Rolls-Royce motor car company is a commercial matter for Vickers. If the sale proceeds, it will fall to be considered by the appropriate regulatory authorities.

Mr. Winterton

I am sure that the Minister is well aware of my deep commitment to manufacturing industry in the United Kingdom and the contribution that it makes to our economy and to employment. Is he not concerned that the last prestige United Kingdom car company could well pass into foreign hands, and that, if it does, decisions relating to its future expansion and employment might be affected by European regulation? Both manufacturing and employment could be taken out of the United Kingdom—out of my county, and out of the constituency represented by the hon. Member for Crewe and Nantwich (Mrs. Dunwoody). Will he take a very positive interest in the matter, to try to protect British manufacturing industry and British jobs?

Mr. Battle

I appreciate that the hon. Gentleman has expressed a passionate concern for manufacturing during his time in the House; we acknowledge that and hope he knows that we share his concern. It is not yet clear whether anyone has made a firm offer. We believe that the company is an example of engineering excellence in Britain, and we hope that that will continue to be so, whoever becomes the owner.

We are not opposed to inward investment per se, but we want the excellence of that company and its contribution to the automotive industry to continue. We are keen that any investors should maintain and develop the company's product range and safeguard the long-term interests of the work force. We shall have to wait until a serious bid is made to know whether it will have to be referred to the European Commission's merger body or whether our regulatory authorities can handle it.

Mrs. Dunwoody

Is it not a total disgrace, however, that the last remaining wholly British-owned car firm is now at risk of being taken over by German manufacturers who may or may not choose to keep that manufacturing unit in my constituency? The largest employer of the most high-quality engineers is now put at risk because of the greed and voraciousness of Vickers, which has walked away with millions of pounds of taxpayers' money without a thought for the future of manufacturing in this country and without taking any responsibility for this high-quality product.

Mr. Battle

To some extent, I agree with my hon. Friend. It is fair to say that the UK does not have an automotive industry, but there is a large car industry in Britain—it includes the whole of the supply chain and engineering excellence, and it employs many people. I can only repeat what I said to the hon. Member for Macclesfield (Mr. Winterton): no bid has yet been made for the company, although there are rumours of a bid. At the appropriate time, consideration will be given to whether to refer it to the European Commission's regulatory authorities or whether it can be dealt with here.

The story outlined by my hon. Friend the Member for Crewe and Nantwich (Mrs. Dunwoody) is the story of what has been going on for the past 20 years—restructuring. However, I would hope that the quality and excellence of our companies means that they can hold their own in the wider world.

Forward to