HC Deb 23 March 1970 vol 798 cc971-3
40 and 41. Mr. Goodhew

asked the Minister of Technology (1) why all Government contracts with Handley Page Aircraft Limited were transferred to Hawker Siddeley Limited on Monday 2nd March;

(2) why he did not sign contracts with Handley Page Aircraft Limited for the conversion of Victor bombers to refuelling tankers before the appointment of a receiver.

47. Mr. Michael McNair-Wilson

asked the Minister of Technology what alternative arrangements he is making for the conversion of Victor bombers to the tanker role, in view of the going into liquidation of Handley Page Aircraft Limited.

57. Mr. Corfield

asked the Minister of Technology if he will make a further statement in regard to the contract between his Department and Handley Page Limited for the conversion of Victor bombers.

66. Mr. Dalyell

asked the Minister of Technology if he will make a statement on his actions in relation to Handley Page.

Mr. Carmichael

I have nothing to add to what I said in the Adjournment debate on 12th March, 1970.—[Vol. 797, c. 1696–708.]

Mr. Goodhew

Is not the Minister aware that a great deal of harm was done to Handley Page Aircraft Limited by the delay in awarding the Victor bomber tanker conversion contract; and that had it been granted last summer, something might have been done? Why were the Government so quick to write off the firm, and not so quick to do something to preserve it?

Mr. Carmichael

On the last occasion I answered the hon. Gentleman's question and other questions very fully, and the hon. Gentleman then agreed that it was dependent on the two factors, one being the conversion programme and the other, Jetstream, and that if one could not be operated successfully the other could not stand on its own. The contract could not be let until the Government were assured that Handley Page design and design capability could handle the contract. The pre-studies for the design were all covered by contract, but we had not received the final costs from Handley Page when the receiver went in.

Mr. McNair-Wilson

Can the Minister say what delay the liquidation of Handley Page Aircraft will cause in the programme of the conversion of the Victor bomber into the tanker rôle, and what delays it will mean in getting those aircraft into service with the R.A.F.?

Mr. Carmichael

This delay will be minimised. Handley Page Aircraft Limited was in liquidation last October, but at that period contingency planning had taken place, and Hawker Siddeley had been questioned about the possibility of its taking over. Therefore, when Handley Page Aircraft Limited went into liquidation these contingency plans were made with Hawker Siddeley and there should be the minimum delay because of the transfer to Hawker Siddeley.

Mr. Corfield

As this is a serious defence requirement, can the Minister tell us whether there is now a firm contract with Hawker Siddeley and whether he is satisfied that the firm has all the facilities available either at Radlett or elsewhere to carry out the contract with the utmost speed?

Mr. Carmichael

We are sure that Hawker Siddeley has all the facilities, and we believe that as the contract has gone to a firm of the size and type of Hawker Siddeley there will be the minimum delay compatible with this type of job. The final contract has not been let, but we hope that it will not be very long before it is.

Mr. Raphael Tuck

Is the uneconomic course to be pursued of sending the work to Woodford, near Manchester? What is to happen to the 2,800 employees in respect of superannuation, holidays with pay and all the other moneys they were owed when the firm went into liquidation?

Mr. Carmichael

The extra cost of moving the work should not be exaggerated. On the question of the position of those who were working at Handley Page Aircraft Limited, I and my hon. Friend the Under-Secretary of State for Employment and Productivity last week met two groups of representatives of the workpeople, and with them we went through many of the points that my hon. Friend has raised. I think that we were able to reassure them on many of the points, but some of them, unfortunately, are matters for the receiver to handle.