§ Mr. Kenneth Carlisleasked the Secretary of State for Industry if he is in a position to make a statement about the discussions which have been held with British Leyland in order to ensure the continuity of the company's financial arrangements after its transfer from the National Enterprise Board.
§ Sir Keith JosephIn a statement on 26 May 1977—[Vol. 932, c. 597–98.]—the then Secretary of State for Industry referred to the National Enterprise Board guidelines which required the NEB, in deciding on its practice in relation to the debts of its subsidiaries, to have regard to the practice of companies in the private sector in relation to the debts of their subsidiaries. He said that the NEB, with his approval, had informed British Leyland with regard to this provision that in its judgment a company in the private sector whose relationship with British Leyland was the same as that of the NEB, by virtue both of the size of its shareholding and closeness of its involvement in the affairs of British Leyland, could not allow British Leyland to be left in a position where it would not be able to meet its obligations. The position was confirmed by the present Administration by my hon. Friend the Under-Secretary of State on 29 November 1979.—[Vol. 974, c.379.] I have informed BL Limited that, when the shareholding is transferred to me on 31 March 1981 under the provisions of the Industry Act 1980, the Government will honour the intention behind those statements and will ensure that the obligations of the group are met.