HC Deb 14 June 1971 vol 819 cc23-5
28. Mr. Barnett

asked the Secretary of State for Trade and Industry if he will make a statement on Rolls-Royce.

Mr. John Davies

No, Sir. I have nothing at present to add to statements made previously.

Mr. Barnett

Since, despite even the incredibly inept handling of this affair by the Government, it still seems likely that the unsecured creditors will receive in excess of 10s., will the right hon. Gentleman confirm that it is still the Government's intention to try for a composition rather than a liquidation? In the circumstances, as the ordinary shareholders are to get nothing, what is the Government's intention about worker shareholders, which they promised to look into?

Mr. Davies

The question of a composition with the creditors is for the company and the Receiver, and not for me. We are still looking into the question of worker shares. I am not yet able to give any definitive answer.

Mr. Michael McNair-Wilson

Can my right hon. Friend say whether there is any truth about the likelihood of Rolls-Royce requiring further finance for the M45 engine?

Mr. Davies

If my hon. Friend tables that question, I will let him know the answer. I am not in a position to give it now.

Mr. Walter Johnson

The whole House will hope that the guarantee of the bank loan to Lockheed will be approved by Congress, but there is a suggestion that it will be delayed until Congress has its Summer Recess. If that is so, may we have an assurance from the Minister that further aid will be forthcoming to Rolls-Royce to enable it to continue work on the RB211?

Mr. Davies

The date which has been put about as being the terminal date when the Government would stop the support to which the hon. Gentleman refers, namely, 8th August, was, broadly speaking, agreed between all the parties, including the American Government, as being reasonable in the circumstances. If it proved not to be possible, a new situation would arise which would then have to be discussed between all the parties.

37. Mr. Dalyell

asked the Secretary of State for Trade and Industry if he will make a statement on the latest position of unsecured creditors of Rolls-Royce Limited, in relation to the negotiations on the price to be paid for the assets acquired by Rolls-Royce (1971) Limited.

Mr. John Davies

The position of the unsecured creditors is a matter for the receiver. The receiver issued a Press statement last week which gives some information, and there is nothing that I can add.

Mr. Dalyell

Why does the Cabinet hesitate to carry out a composition, which is within its powers?

Mr. Davies

The question of a composition with creditors is a matter for the Receiver and the company, not for the Cabinet.

Mr. Rost

In negotiating the price for the take-over of the assets, what consideration is being given to the goodwill and research and development expenditure already incurred on the RB211 contract without which future profits would be unobtainable?

Mr. Davies

All these matters are fully considered within the framework of the negotiation and discussion which is now currently going on.