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British Leyland

Volume 932: debated on Thursday 26 May 1977

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asked the Secretary of State for Industry what representations he has received to date from members of the Conservative Party about the Daily Mail-British Leyland affair.

None, but my right hon. Friend the Prime Minister has received a letter from a member of the; Conservative Party who is an MP and my right hon. Friend the Secretary of State has been asked to reply.

asked the Secretary of State for Industry if he will make a statement on the operation of paragraph 10 of the Schedule to the National Enterprise Board (Guidelines) Direction 1976 in respect of British Leyland.

The first sentence of this paragraph, which has the force of law, says that in deciding on its practice in relation to the debts of its subsidiaries, the NEB shall have regard to the practice of companies in the private sector in relation to the debts of its subsidiaries. The NEB, with my approval, has 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 the 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.