§ Mr. Parkasked the Secretary of State for Industry if he will make a statement on the National Enterprise Board's report on British Leyland.
§ Mr. VarleyThe National Enterprise Board has recently examined British Ley-502W land's performance since October 1975—the beginning of the company's present financial year—and has carried out a review of BL's first long-term corporate plan. The NEB has made a full report to me: it is satisfied that the corporate plan provides a sound framework for the future development of the company and is in accordance with the board strategy of the Ryder Report. It considers that the company's achievements have outweighed some disappointing aspects of performance and that the trend of improvement fully justifies the first tranche of £100 million. The Government accept the conclusions of the NEB report.
I am placing in the Vote Office, the Printed Paper Office, and the Libraries of both Houses, copies of the NEB's own summary of its report to me.
It is the Government's intention that while the larger part of the funds required by BL this year should be made available from the NEB's resources, £30 million should be provided under Section 8 of the Industry Act 1972, through a direction to the NEB under Section 3 of the Industry Act 1975. I am tabling a motion today in accordance with the requirements of Section 8, seeking the consent of the House to the provision of this amount. There will be an opportunity to debate this before the Summer Recess.
The Government continue to support the basic strategy set out in the Ryder Report, with its emphasis on a programme of capital investment necessary to restore BL's competitiveness by transforming facilities and rationalising the model range. The provision of finance will continue to be conditional upon achievement by the company. Much remains to be done, but my first-hand contact with the BL management and work force representatives leads me to endorse the NEB's view that an encouraging start is being made.