HC Deb 06 June 1967 vol 747 cc777-8
13. Mr. R. Carr

asked the Minister of Technology what progress he is making in his negotiations for the merger of the main airframe companies with substantial Government participation; and whether he will make a statement.

Mr. Benn

These are complex negotiations involving as a first stage the valuation of the companies concerned. This is necessarily a lengthy business not least because the companies are not quoted on the Stock Exchange. I cannot yet say when the negotiations will be completed.

Mr. Carr

Yes, but it is now more than 18 months since the publication of the Plowden Committee's Report and is the right hon. Gentleman not aware that this continuing lack of certainty about the future structure and ownership of the industry must be holding up planning and commitments of future projects and must also be holding up the development and stability of management, on which increased efficiency primarily depends?

Mr. Benn

We want to get ahead with this, but it is a complicated business, as no one knows better that the right hon. Member for Mitcham (Mr. R. Carr). It is better to get this right than to hurry and then find oneself in difficulties.

Sir A. V. Harvey

Would the right hon. Gentleman take into account that this long delay is having a serious effect on the trained personnel in this industry, many of whom, as he said earlier, are leaving the country, and that an early decision would give them security of tenure in their professions?

Mr. Benn

I certainly have this point in mind, although I think that the trained personnel in the industry are more likely to reach their decision to stay or leave according to the number of projects on which they are able to work. Although I recognise the need for a rapid conclusion to this matter, I hope that people will not over-estimate the effects of the uncertainty that is inevitably associated with long and difficult negotiations.