HC Deb 27 November 1961 vol 650 cc21-3
30. Mr. H. Wilson

asked the Minister of Aviation if he has completed his inquiries into the fulfilment of the contracts awarded by his Department to Vernons Industries Ltd. of Kirkby; and if he will state the address in Kirkby at which Messrs. Vernons are completing the contracts.

The Minister of Aviation (Mr. Peter Thorneycroft)

The contracts were to have been completed for Vernons Industries Ltd at the Petbow Limited factory (formerly Vernons) at Kirkby; but Vernons Industries now informs me that, as Petbow has decided to close the Kirkby factory, the contracts will be completed by Petbow at Sandwich.

Mr. Wilson

Is not the right hon. Gentleman aware that, no doubt in all good faith, he gave misleading information to the House in his previous answer? In this case, Petbow took over Vernon's factory on 1st July and only four or five weeks later closed it down, despite all assurances, and transferred all the work on the Ministry of Aviation contracts—on which it had been given preference in order to give employment to Merseyside—to the South-East, and that this was done without the right hon. Gentleman's permission? Is he further aware that it was only after I took this up with him that he caught up with events and agreed retrospectively to allow the contracts to be transferred? In these circumstances, will he now direct an inquiry to be held, as I asked him to do in September?

Mr. Thorneycroft

I can assure the right hon. Gentleman—and I think he knows this—that I have not knowingly given misleading information. I have kept him fully informed of all the information in my possession. I understand the situation to be simply that once it was known that the factory was to be closed the workers very properly started to seek other employment. There were about 250 of them. By last week 115 had left to take up other employment, and since then 55 more have left. In these circumstances, it is difficult to see how the contracts could have been carried out.

Mr. Wilson

Is it not clear that, apart from the problem of unemployment, which I have taken up with the Ministry of Labour, my information was several weeks ahead of the right hon. Gentleman's even though, when I gave him that information, he did not believe me? Is he now satisfied that the motive for the purchase of this factory was to get these contracts and the means of fulfilling them, and that they have now been transferred from the area in which they were awarded to another area? Will he now accept the suggestion I put to him many weeks ago, that in view of the rather dubious transactions that have taken place, he should have a full inquiry made? As I have already said, I entirely acquit him of knowingly misleading the House, but I do not acquit those concerned of having misled him.

Mr. Thorneycroft

I do not think that there was anything dubious about this. I believe that there was an honest intention to carry out the work until the end of the year, but as the workers were leaving the work could not be done. I am happy to say that the workers are finding fresh employment.