§ Mr. Gryllsasked the Secretary of State for Trade and Industry what recent developments there have been in the negotiations between Norton Villiers Triumph Limited and representatives of the former workforce at the Meriden factory; and if he will make a statement.
§ Mr. ChatawayIn October of last year Mr. Poore of NVT told the Meriden workers that he would be prepared to afford them the opportunity of acquiring the Meriden plant and factory if equipment, drawings and finished motor cycles there were released to NVT. At a meeting, which I chaired on 30th November, it was agreed in principle by both parties that the Meriden workers, who wished to try to form themselves into a co-opera-300W tive, should work for a period on subcontract for NVT and be given the option subsequently to purchase the plant and factory. A detailed agreement to this effect was concluded on 18th January which was subject to ratification by both sides. It was never proposed by either party nor suggested by the DTI in any of these discussions that public money should be involved in these arrangements.
The NVT board has since concluded that because of the financial stringencies and uncertainties, imposed by electricity shortages, NVT cannot now undertake to finance the supply of components to a Meriden co-operative during the proposed interim period. In answer to a recent inquiry from NVT the DTI said that no financial assistance for this purpose could be made available by the Department. NVT has, I understand, informed the workers that, while it cannot ratify the agreement reached on 18th January, it is prepared to continue discussions on a proposal made by the Meriden workers for the prompt purchase of the factory and plant.
Work is proceeding at the NVT plants at Wolverhampton and Small Heath, Birmingham. The export prospects for motor cycles continue to be very substantial particularly in the important United States market. It therefore remains much in the interest both of NVT and the Meriden workers that the impasse at Meriden should be resolved as quickly as possible. The security for the Government's investment, as accepted by the DTI and its Industrial Development Advisory Board, remains as described in my answer of 11th June to my hon. Friend the Member for Norwich, South (Dr. Stuttaford)—[Vol. 857, c. 229–31.]—and in the offer documents sent out on 7th June 1973 on behalf of NVT.