Govt ready to act on BL and Fodens
Page 7
If you've noticed an error in this article please click here to report it so we can fix it.
from our political correspondent 30VERNMENT ACTION on Important reports on two of he country's major lorry manufacturers, British Leyland and Fodens, is expected to pe announced with the mininum of delay.
The report on British Leyand by a team headed by Sir )on Ryder, chairman-designate A the National Enterprise 3oard, has been under study )3r the Industry Secretary, Mr Cony Benn, and his officials or the past fortnight.
The Minister is known to be inxious to make a statement n the Commons as soon as )ossible to allay further tnxiety about the firm's future. )ublication of the report in full las been ruled out because of he value of information to Iritish Leyland's competitors ontained in it. But Mr Benn vill be reporting to the House m the report's principal reommendations and their inancial implications. The Government guaranteed assistance of up to £50m to cover bank borrowing while the inquiry was carried out.
Estimates of the firm's needs, mainly to finance the £500m investment programme, vary wildly between £100m and £1000m and the Government is certain to end up as a major shareholder.
Fod en s, which sought Government help after running into liquidity problems, has also had its bank overdraft guaranteed while the company's prospects are being put on a sound footing were examined by Price Waterhouse, the firm of accountants.
The Price Waterhouse report reached Mr Benn's desk on Friday and is being urgently considered.
The report will not be published for the same considerations which arise in the case of British Leyland, but Mr Benn will be informing the House of its general conclusions and the action he proposes to take.