HC Deb 25 February 1987 vol 111 cc284-5W
31. Mr. James Hamilton

asked the Secretary of State for Trade and Industry if he will make a statement on his Department's involvement in the proposed closure of Caterpillar's Tractor Company at Tannockville, Glasgow; and if he will make a statement.

Mr. Giles Shaw

My Department was informed of Caterpillar's decision on 13 January 1987. My right hon. and learned Friend the Secretary of State for Scotland and I met senior Caterpillar executives on 20 January to urge the company to reconsider its decision. Subsequently, officials of DTI and the Scottish Office met Caterpillar senior management for further clarification.

While I regret Caterpillar's decision, and the manner in which it was taken, following hard upon an earlier decision to modernise the Uddingston plant, it is ultimately a commercial issue for the company to resolve. However, I hope that as a result of the study of the site and factory recently put in hand by the Parliamentary Under-Secretary of State, Scottish Office, my hon. Friend the Member for Galloway and Upper Nithsdale (Mr. Lang), some manufacturing and employment may be maintained.

37. Mr. Chris Smith

asked the Secretary of State for Trade and Industry what assessment he has made of the impact of the proposed closure of the Caterpillar factory in Scotland on component manufacturers in the United Kingdom.

Mr. Giles Shaw

I understand that Caterpillar is working closely with its United Kingdom suppliers to help them maintain a continuing relationship through supply to other Caterpillar plants, notably to Grenoble to which production of the D6 tractor dozer is being transferred.

43. Mr. Flannery

asked the Secretary of State for Trade and Industry whether he will seek an urgent meeting with the American owners of the Caterpillar factory at Uddingston to discuss its future.

Mr. Giles Shaw

No. My right hon. and learned Friend the Secretary of State for Scotland and I have already met senior Caterpillar executives. No further meeting involving Ministers is planned at present, but officials are in touch with the company to make a study of the site and factory at Uddingston to see whether some manufacture and employment can be maintained.

49. Mr. Ernie Ross

asked the Secretary of State for Trade and Industry whether his Department was informed about the proposed closure of the Caterpillar factory in Scotland before it was publicly announced; and if he will make a statement.

Mr. Giles Shaw

My Department was informed of Caterpillar's decision on 13 January 1987, the day before the announcement.

While I regret Caterpillar's decision and the manner in which it was taken, following hard upon an announcement in September 1986 that the Glasgow plant was to be modernised, it is ultimately a commercial issue for the company to resolve. However, I hope that as a result of the study of the site and factory at Uddingston recently put in hand by the Parliamentary Under-Secretary of State for Scotland, Scottish Office, my hon. Friend the Member for Galloway and Upper Nithsdale (Mr. Lang), some manufacturing and employment may be maintained.

50. Mr. Hoyle

asked the Secretary of State for Trade and Industry what discussions have taken place between his Department and the Caterpillar company about the proposed closure of its factory in Scotland.

Mr. Giles Shaw

My right hon. and learned Friend the Secretary of State for Scotland and I met senior Caterpillar executives on 20 January to urge them to reconsider their decision. Officials of DTI and the Scottish Office subsequently met Caterpillar senior management on 2 February for further clarification.

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