HC Deb 05 March 1969 vol 779 cc409-10
16 and 17. Mr. Stratton Mills

asked the Minister of Technology (1) if he will now make a statement on his plans for the capital reorganisation of Short Brothers and Harland Limited;

(2) if he will now make a statement on his discussions with the Rohr Corporation concerning Short Brothers and Harland Limited.

Mr. J. P. W. Mallalieu

I have nothing to add to my replies to the hon. Member for Belfast, East (Mr. McMaster) on 29th January.—[Vol. 776, c. 1311–2.]

Mr. Stratton Mills

Does the hon. Gentleman recall that his right hon. Friend said on 27th November that there were not yet firm negotiations with Rohr Corporation? Can he say whether firm negotiations have been commenced, and why this is taking so long? On the capital reconstruction side, can the hon. Gentleman say why this cannot proceed simultaneously with these negotiations, as the negotiations with the Rohr Corporation seem to be going at a fairly leisurely pace?

Mr. Mallalieu

Capital reconstruction and the Rohr negotiations are closely interlinked, and one will be coincidental with the other. It is difficult to say whether the negotiations with the Rohr Corporation are firm or not, but we are in regular contact with Rohr, and we hope to get some firm proposals in the near future.

Mr. McMaster

Why should the capital reconstruction of Short Brothers be interlinked with the deal with Rohr, which may fall through? Is not the hon. Gentleman aware of the considerable management difficulties created by the Government's delay in this field, and will he do all he can to expedite a proper financial reorganisation of the company.

Mr. Mallalieu

We shall do all we can to do this speedily but I do not think it would make sense to have two bites at that cherry, to have capital reorganisation now and then another if and when the negotiations with Rohr are finalised.

Mr. Onslow

Can the hon. Gentleman be more frank with the House? What is holding things up? When shall we get a decision?

Mr. Mallalieu

I am always frank with the House. We are waiting for Rohr to deal with certain points that we put to it, and we hope that it will deal with them expeditiously.