HC Deb 20 January 1943 vol 386 cc193-4
29. Mr. A. Edwards

asked the Minister of Aircraft Production on what grounds he has approved the transaction between the Napier Company and the English Electrical Company; how much Government money is employed in each concern; whether he is aware that compensation on a basis of salaries, involving large sums of money, is being awarded to directors of the Napier Company who have failed to produce adequate results; and whether he will vary this agreement?

The Minister of Aircraft Production (Sir Stafford Cripps)

This matter concerns my Department only to the extent of a change in management control and the acquisition of certain fixed assets by the Department from the Napier Company. I am satisfied that this change will be for the benefit of production. It is undesirable on security grounds to divulge the total of Government assets operated by the company, but I am prepared to let my hon. Friend have the figures privately if he so wishes. The compensation paid to the retiring directors of the company was entirely a matter for the shareholders, and I have no power to vary the arrangement arrived at.

Mr. Edwards

Inasmuch as the money was provided by the Government in order to carry this transaction through, does the Minister think it right that men who have drawn substantial salaries for a good many years, and have failed in their job, should be compensated? Is he aware that the compensation, if it is free of tax, as I understand it is, amounts to something like £300,000?

Sir S. Cripps

The money for compensation was not provided by the Government, and it is not a question for the Government but one for the shareholders only.

Mr. Edwards

Is it not a fact that the Government did provide £750,000 in order that this transaction should be carried through?

Sir S. Cripps

That is not the reason why the money was provided, nor was it paid for that purpose.

Mr. Edwards

It came from the Government.