HC Deb 20 March 1986 vol 94 cc266-7W
Mr. Hoyle

asked the Secretary of State for Trade and Industry what assurances are being sought in respect of continuity of employment for Bedford employees in the event of the merger of General Motors and British Leyland trucks and vans.

Mr. Peter Morrison

No decisions have been made but the Government's aim is a solution which offers the best prospects of securing long-term jobs in the United Kingdom commercial vehicles industry as a whole. International competitiveness is the only guarantee of the long-term viability of the industry and the protection of jobs.

Mr. Hoyle

asked the Secretary of State for Trade and Industry (1) what assessment he has made of the effect on future levels of British truck production at different plants of the proposed merger between General Motors and British Leyland's truck division;

(2) what assessment he has made of the effect on future levels of British van production at different plants of the proposed merger between General Motors and British Leyland's van division.

Mr. Peter Morrison

No decisions have been made about the future of the businesses. However, the Government would like to see increased United Kingdom van and truck output as a result of improving competitiveness.

Mr. Hoyle

asked the Secretary of State for Trade and Industry what assessment he has made of the implications for the proposed merger between General Motors and British Leyland's van and truck divisions of General Motors' worldwide trucks and van sales strategy.

Mr. Peter Morrison

GM has told me that should its proposals to acquire the Land Rover-Leyland businesses be accepted, the United Kingdom would be the European centre for its truck and van operations, and that the new entity would have access to GM's worldwide sales network, including that of Opel for vans in Europe.

Mr. Hoyle

asked the Secretary of State for Trade and Industry what information he has on General Motors' investment programme for Dunstable and Luton plants in the context of discussions on the proposed merger with British Leyland trucks and vans.

Mr. Peter Morrison

No decisions have been made. Should GM's proposals be accepted, it has said that it would be willing to give undertakings that an appropriate level of investment would be made in the business to achieve competitive future models and facilities.

Mr. Hoyle

asked the Secretary of State for Trade and Industry what assessment he has made of the future of British Leyland's test centre at Leyland in the light of the proposed merger with General Motors and of its test centres at Luton and Millbrook.

Mr. Peter Morrison

No decisions have been made. The utilisation of particular facilities will be a matter for the future management of the businesses.

Mr. Hoyle

asked the Secretary of State for Trade and Industry (1) what assessment he has made of the effects of the proposed merger between General Motors and British Leyland on the constituent parts of the British motor parts central stocking and distribution sector;

(2) what assessment he has made of the implications for British stampings factory units of the proposed merger between British Leyland and General Motors.

Mr. Peter Morrison

No decisions have been made. The Government are seeking a solution which offers the best prospects for the United Kingdom commercial vehicle industry as a whole, and full consideration will be given to all relevant factors including the effect on the components and distribution sectors.