Meriden Motor Cycles LTD.

Part of the debate – in the House of Commons at 12:00 am on 22 March 1977.

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Photo of Kenneth Clarke Kenneth Clarke Shadow Spokesperson (Trade and Industry) 12:00, 22 March 1977

This motion is part of an interesting package deal whereby it seems that one of the country's leading capitalists, Sir Arnold Weinstock of GEC, is coming to the rescue of what was originally a Socialist-inspired workers' co-operative. The Government are asking for approval of further advances of £500,000, and NVT, which will receive that money, will use it to redeem preference shares held by the Government. But the important part of the package is that Sir Arnold Weinstock and GEC are injecting £1 million, plus other assistance, into the future running of the Co-operative. We hope that this intervention by GEC will begin to introduce some new realism into the Meriden Co-operative.

I am sure that everyone who has looked aver the first two years of what the Minister described as an experiment will realise that there is room for more realism in the running of the Co-operative. In order to guarantee its survival, it needs to produce a product with real market prospects at home and overseas. It needs so to conduct itself that it can produce a sensible return on capital.