§ Mr. Budgenasked the Secretary of State for Industry whether he will now announce the Government's decision on the 1983 corporate plan of British Leyland.
§ Mr. Norman LamontI am making available in the Library of the House and in the Vote Office a report by BL on its recent performance and details of the corporate plan. The plan is essentially an updating of the strategy contained in the 1982 corporate plan for returning the company's businesses to viability in the medium term.
In his statement to the House on 26 January 1981 my right hon. Friend the then Secretary of State announced that the Government had agreed to fund the first two years of the 1981 corporate plan—that is, to provide up to £620 million in 1981–82 and £370 million in 1982–83. The 1981 plan also identified a need for a further £150 million of equity funding after March 1983, although no commitment was sought that this sum would be provided by the Government. The 1983 plan confirms that further funding will be required after March 1983. The BL board has however made clear its intention of seeking private sector equity for the company's mainstream businesses within the next two years, and in anticipation of the proceeds to be derived in this way the request for further Government funding in the 1983 plan is reduced to £100 million.
In the light of a review of BL's recent performance and prospects, the Government have decided to approve the 1983 corporate plan and its associated funding requirement subject to the regular monitoring of progress in achieving the Plan. This means that, in addition to the £100 million out of the £990 million already made available which is likely to be carried forward into 1983–84, a further sum of up to £100 million will be made available to the company if needed during 1983 and 1984. The BL board and the Government will, of course, continue to monitor progress.
The assistance is being discussed with the Commission of the European Communities.