§ 24. Mr. Arthur Davidsonasked the Secretary of State for Employment and Productivity if she will make a statement about her policy with regard to mergers and their effect upon employment.
§ Mr. HattersleyGovernment policy is to encourage mergers which are in the public interest and which, by making a more efficient use of resources, will enable the companies concerned to improve their competitive position at home and overseas. It is the policy of my Department to encourage management to carry out an early examination of the manpower requirements of the new organisation and to plan recruitment and training programmes accordingly. There should be the fullest possible consultation with employee representatives, particularly if it is found that in the interest of overall efficiency redundancies are likely to arise.
§ Mr. DavidsonDoes my hon. Friend agree that if redundancies are to take place as a result of rationalisation it is vital that they take place in those areas where there is alternative employment rather than in those areas where it will be difficult to find employment for people declared redundant?
§ Mr. HattersleyCertainly one of the criteria which affects vocational redundancy must be the company's judgment about what is economically the best procedure for the firm, but when there is a balance of advantage which is more or less equal my right hon. Friend will certainly urge that one of the objects of merger policy should be to encourage companies to group themselves in development areas and other areas of high unemployment.
Mr. Edward M. TaylorWith regard to shipbuilding on Clydeside, can the hon. Gentleman confirm that it is not the Government's policy to use pressure to promote mergers if these are against the wishes and commercial judgment of either party?
§ Mr. HattersleyThat is quite a different question.