Tyre Industry

Oral Answers to Questions — Trade and Industry – in the House of Commons at 12:00 am on 4 December 1972.

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Photo of Mr Edward Milne Mr Edward Milne , Blyth 12:00, 4 December 1972

asked the Secretary of State for Trade and Industry what discussions have taken place between Her Majesty's Government and the Dunlop Company concerning the jobs position in its factories throughout Great Britain, following the heavy losses sustained by Pirelli; and if he will make a statement.

Photo of Mr Christopher Chataway Mr Christopher Chataway , Chichester

The problems of Pirelli in Italy have had no adverse effect on employment at Dunlop or Pirelli factories in this country. I understand Dunlop is conducting with Pirelli a special study concerning Pirelli's Italian operations. Officials have been in touch with Dunlop about this.

Photo of Mr Edward Milne Mr Edward Milne , Blyth

While thanking the Minister for the latter part of his reply, which indicates that the firms are getting together, may I ask him whether he is aware that his answer to the Question will cause widespread concern in southeast Northumberland and the Northern Region because of the heavy losses sustained by Pirelli, since Italy was paraded to us as an example of regional development within the Six, and the Northern Region is watching with apprehension the outcome of this entry into the realm of multi-national companies? Will the Minister give the matter greater concern than he appears to have given up to now?

Photo of Mr Christopher Chataway Mr Christopher Chataway , Chichester

Why the hon. Gentleman should say that my answer will cause considerable concern, when I have said that the problems of Pirelli in Italy will have no adverse effect on employment—

Photo of Mr Edward Milne Mr Edward Milne , Blyth

That is precisely why.

Photo of Mr Christopher Chataway Mr Christopher Chataway , Chichester

—at the Dunlop or Pirelli companies in this country, I find difficult to understand.

Photo of Mr Tony Benn Mr Tony Benn , Bristol South East

Do the present Government do what the previous Government did, namely, have continuing discussions at ministerial level with multi-national companies to ascertain what are their investment plans and manpower forecasts? Is the right hon. Gentleman aware that there is concern not only about the case cited by my hon. Friend but about the possible effect on employment in this country by the development by Ford of a large plant in Spain and many other developments? Do Ministers keep in touch with the multi-nationals about their future planning?

Photo of Mr Christopher Chataway Mr Christopher Chataway , Chichester

We keep in touch with all major companies at ministerial level. We have benefited greatly as a nation from investment in this country by multinational companies, a good deal of which the right hon. Gentleman encouraged. What is absolutely fanciful is the suggestion made from the Opposition that a British Government ought to try to get directors on the main boards of multinational companies.

Photo of Mr Greville Janner Mr Greville Janner , Leicester North West

Is the right hon. Gentleman aware that Dunlop recently closed down St. Mary's Mill in my constituency, causing 850 people to be put out of work? Is it not time that economic profits ceased to be the sole criterion for the closing down of mills and other factories in this country?

Photo of Mr Christopher Chataway Mr Christopher Chataway , Chichester

I will certainly look at the consequences of that case if the hon. and learned Gentleman wishes me to do so. He will know that whether a firm is nationalised or not, redundancies very often take place.

Photo of Mr Edward Milne Mr Edward Milne , Blyth

On a point of order. In view of the extremely unsatisfactory nature of the reply, I wish to give notice that I shall raise the matter further.