HC Deb 24 February 1986 vol 92 cc419-20W
Mr. Straw

asked the Secretary of State for Trade and Industry when he first became aware of the letter from Hill Samuel & Co., dated 14 February, concerning a time limit on offers to purchase Leyland Vehicles Land Rover and Freight Rover.

Mr. Channon

I first became aware of the letter on 19 February.

Mr. Straw

asked the Secretary of State for Trade and Industry whether there was any prior consultation between Her Majesty's Government on the one hand and British Leyland and Hill Samuel & Co. on the other concerning the setting of a time limit for the receipt of offers to purchase Leyland Vehicles Land Rover and Freight Rover.

Mr. Channon

There was prior consultation about the time frame in which parties should be asked to indicate firm intentions to make offers, but not about the precise date by which these should be requested.

Mr. Dalyell

asked the Secretary of State for Trade and Industry when he first saw the letter of 14 February regarding deadlines for the sale of British Leyland.

Mr. Channon

I first saw the text on which this letter is based on 19 February, after I answered the private notice question from the right hon. Member for Monklands, East (Mr. Smith).

Mr. Hoyle

asked the Secretary of State for Trade and Industry when discussions on the possible sale of Leyland Vehicles to General Motors commenced; who is carrying out the negotiations on behalf of Leyland Vehicles; who negotiated the assurances regarding employment and import content which he has given to the House; at what stage of the negotiations he expects the relevant trade unions to be consulted; and what role General Motors World Truck is playing in the talks.

Mr. Peter Morrison

The Government made a preliminary approach to General Motors in mid-1984 to establish whether, in principle, they would be interested in exploring with BL the possibility of a joint approach to the problems of the United Kingdom commercial vehicle industry. Following detailed studies carried out by the two companies, it was agreed in the autumn of 1985 that substantive talks should begin directed at the possible acquisition by General Motors of various parts of Land Rover-Leyland.

BL has been responsible for the conduct of the commercial discussions, although the Government have been represented at the talks. The General Motors delegation has been led by representatives of the General Motors Truck and Bus Group. Government officials are, however, primarily responsible for the discussions taking place with General Motors on the question of assurances regarding the future of the relevant Land Rover-Leyland business under General Motors ownership.

I know that both General Motors and BL recognise this is a very uncertain and worrying time for their work forces and are doing their utmost to keep them informed. I am myself also meeting trade union delegations to explain the position.