HL Deb 25 October 1982 vol 435 cc347-9

4.36 p.m.

"The Minister of State, Northern Ireland Office (The Earl of Cowrie)

My Lords, I hope it will be for the convenience of your Lordships if at this point I repeat, in the form of a Statement, the Answer to a Private Notice Question given in another place by my right honourable friend the Secretary of State for Northern Ireland on the subject of the De Lorean Motor Company Limited. My right honourable friend said: As I announced on 19th October, because no investor had come forward to take over De Lorean Motor Company Limited, 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 since then 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". My Lords, that ends my right honourable friend's Statement.

Lord Donaldson of Kingsbridge

My Lords, I am grateful to the noble Earl for reading that Statement to the House. It tells us rather less than we understood from the Daily Telegraph, but we prefer a little accurate information to a lot which is not. So I am grateful for what little we have been told. The Statement says that a number of interests are exploring the possibilities of acquiring the entire business as a going concern. May I ask the noble Earl whether that means that liquidation can be stopped and that it is not an absolute certainty? I think we should all like to know the answer to that question, because the worry now in this House, as everywhere else, is more about unemployment in Northern Ireland than even about terrorism.

Lord Ponsonby of Shulbrede

My Lords, I join with the noble Lord in thanking the noble Earl for repeating the holding statement made by the Secretary of State in another place. I am sure all noble Lords hope that detailed proposals will result from the present discussions. I think noble Lords should remember that we are speaking not just about jobs at De Lorean but about jobs in a number of other factories and enterprises in Northern Ireland. Therefore the complete collapse of the De Lorean Motor Company would be a calamity for Northern Ireland. I need hardly add that jobs are desperately needed in West Belfast.

Lord Banks

My Lords, I should like to join in thanking the noble Earl for repeating the Statement made in another place. We, too, regret that the noble Earl is not able to give us better news than the morning press suggested might be imminent. We must hope that an offer of the kind reported in the press may in fact be forthcoming. I should like to join with the noble Lord, Lord Donaldson of Kingsbridge, in asking the noble Earl whether he can give any indication of how much time is left for such an offer to be made. Clearly such an offer would be welcome because of the economic situation in Northern Ireland and the considerable amount of Government money invested in the project.

The Earl of Gowrie

My Lords, I certainly agree with the noble Lord, Lord Donaldson of Kingsbridge, that it would be irresponsible for the Government to raise expectations at this juncture which might in the event not be fulfilled. Therefore I can say to the noble Lord, Lord Banks, and to the House that the process of the running down and liquidation of the company (the noble Lord, Lord Donaldson of Kingsbridge, also asked me about this) will continue. However, should any realistic possibilities open up of new investors coming along, then of course the Government would consider every proposal on its merits. I also agree with the noble Lord, Lord Ponsonby of Shulbrede, about how badly jobs are needed in Belfast generally and perhaps in West Belfast particularly. I would like to pay the Government's tribute to the very great achievement of the people of this part of a beleaguered city in moving very rapidly from having no tradition of motor manufacturing to a tradition of motor manufacturing whose failure was not much to do with them, if I may put it that way.

We must, of course, live in hope but at the same time it would be quite wrong for the Government not to recognise the realities or not to put, as it were, any time extension on the procedure. It may be that the fact that the sands are running out so quickly will concentrate the minds of those who may still be interested in the project.

Lord Beswick

My Lords, I am sure that the whole House will welcome the rather warmer words which the noble Earl used in his supplementary answer, as compared with the original Statement. It is, of course, absolutely essential to consider any proposals on their merits, but it would be encouraging if the noble Earl could say that they will be considered at any rate, with a degree of sympathy. Also, may I ask the noble Earl if he is aware how much his words will be appreciated, when he said that the effort—although not creditable in certain ways—was no discredit to the great effort put into it by the people of Northern Ireland?

The Earl of Cowrie

My Lords, I am grateful to the noble Lord, Lord Beswick. Again, I must repeat that I did not want to give any false prospectus or any bogus encouragement. The Government will have to look at proposals on their merits, as I said. I must reiterate, however, that the Government have decided—rightly in my view—not to put any more public money into a fund which has absorbed a very great deal of public money, unfortunately without visible dividends for the public and without any real job security for those who were engaged in the manufacture of the cars. We can always live in hope that private investment will note the achievements of the people at the Dunmurry plant, note the excellence of the equipment and the rest of it, and will make decisions on a commercial basis—which will be very welcome in Northern Ireland.