HC Deb 26 April 1984 vol 58 cc876-7
16. Mr. Robert Atkins

asked the Secretary of State for Northern Ireland when he expects to denationalise Short Brothers.

Mr. Butler

The Government have yet to take a decision on whether to return Short Brothers to the private sector. However, there is no reason why, under certain conditions and in pursuit of the Government's overall policy on privatisation, the company should not be considered for reversion to private ownership in due course.

Mr. Atkins

I thank the Minister for his favourable answer. Does he agree that when Short Brothers is privatised it is vital, first, that it should retain its central importance to the economy of Northern Ireland, and, secondly, that its employees have the chance, as have employees in other companies which have been returned to the private sector, to buy shares in the company at advantageous rates?

Mr. Butler

Ministers are aware of the importance of Short Brothers to the economy of Northern Ireland, and that would be specially observed in the event of privatisation. The Government have a good record of offering shares to employees of privatised companies. In some cases those employees have done extremely well. We hope that we can look after the interests of Short Brothers' employees in the same way.

Mr. Skinner

Will the Minister confirm that during recent years the amount of subsidy handed over to Short Brothers aeroplane factories is greater per capita than that to the mining industry?

Mr. Butler

I shall have to check my facts first. However, I am glad to say that, as with the mining industry, Short Brothers has a profitable and rosy future.

Mr. Michael Brown

Does the Minister agree that the ability of Short Brothers to survive depends on its ability to sell to its customers? Will the Minister support the Genair company in my constituency, which probably purchases more Short Brothers' aeroplanes than any other company in the world, bearing in mind the fact that the British Airports Authority is doing its utmost to prevent Genair from flying aeroplanes at times when passengers wish to use them?

Mr. Butler

I am not responsible for the British Airports Authority. I hope that the airline to which my hon. Friend refers will continue to prosper, because it uses the first-class products of Short Brothers.

Mr. McNamara

If the privatisation of Short Brothers follows the privatisation of British Aerospace, how many jobs will be lost in Short Brothers in Northern Ireland compared with the number that have been lost in British Aerospace? Is the selling of shares at preferential rates preferable to people retaining their jobs?

Mr. Butler

That is a hypothetical question, but the way in which Short Brothers has demonstrated its ability to compete in world markets offers a secure and optimistic future for its work force.

Mr. Archer

Does it amount to this, that after pouring vast amounts of public money into the company during the bad years, and £7.4 million during the past 12 months, and appealing to the loyalty of the work force when the going was tough, the Government now intend, if the company is successful and profitable, to divert the advantages from the public and the work force into the pockets of those who finance the Tory election procedures?

Mr. Butler

The right hon. and learned Gentleman spoiled a serious question with that completely irresponsible remark at the end. He will not accept that companies going to the private sector will do better than if they remained in the public sector. The Government believe that to be the case, and generally it can be demonstrated to be true.