Rolls-Royce

Part of the debate – in the House of Commons at 9:36 pm on 28 April 1987.

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Photo of Mr Terry Davis Mr Terry Davis , Birmingham, Hodge Hill 9:36, 28 April 1987

Those sections have done that as a result of investment under public ownership. To give just one example, Freight-Rover was losing money under private ownership. Conservative Members also wish to ignore those companies that have been privatised, and then have failed. [Interruption.] The hon. Member for Derbyshire, West, referred to Jaguar — [Interruption.] The hon. Member for Amber Valley (Mr. Oppenheim) should listen. I have already identified one such section in my own constituency. I am now dealing with his hon. Friend who claims to know Coventry and who referred to Jaguar.

Coventry also has Rolls-Royce. Right next to Rolls-Royce is Coventry Climax, which was privatised in 1981. At the time of privatisation, Coventry Climax had 3,000 men and women working there. They were told that their jobs were secure, just as the Rolls-Royce workers have been told that their jobs are secure now. Their jobs were secure for five years, past a general election. However in 1986, the work force at Coventry Climax was reduced from 3,000 to 600. Conservative Members ignore that also. I am not saying that that was necessarily the result of privatisation. However, I think it was because of the people who bought Coventry Climax and who took over the company, milked it, stripped it and ran it down. But the point is that privatisation is not some mysterious, magic formula which produces job security or increases profits. It can lead to failure as well as success.

We all know that the Government are determined to privatise everything they can, not because it is in the industrial interests of companies, nor because they are interested in industrial success; they are interested in dogma. For 40 years we have had a consensus between the main political parties that there should he a mixed economy. The Labour party still believes in it, but the Conservative Government have rejected it. By voting for the motion tonight the Labour party will affirm its belief in the mixed economy and reject the views of the extremists on the Governments Benches.