The Industrial Reorganisation Corporation is to grant British Leyland a Â£10m. renewable loan facility for plant modernization. A condition of the loan, which the I.R.C. says is to stimulate capital investment in machine tools, is that British Leyland buys ‘ British ‘.
The motor group was chosen because it is one of the biggest users of machine tools. but the l.R.C. says other companies could qualify for similar assistance. Equally the scheme could be extended outside the machine tool industry, already heavily subsidized by the l.R.C.. to other areas of industrial production.