HC Deb 18 October 1971 vol 823 cc357-8
21. Mr. Bishop

asked the Secretary of State for Trade and Industry if he will make a statement on the future of Rolls-Royce (1971) Limited.

The Under-Secretary of State for the Department of Trade and Industry (Mr. David Price)

The RB211 contract has, as the House knows, been successfully renegotiated and Rolls-Royce (1971) Ltd. now has a programme of work which should maintain its position in the forefront of world aviation.

Mr. Bishop

I appreciate that the Minister's assurance on the future of Rolls-Royce on this aspect of the matter. Would he comment on the serious allegations made yesterday in the Sunday Times Business News that millions of pounds' worth of royalties on Rolls-Royce engine designs may be lost because of the way in which the British Government took over Rolls-Royce patents immediately after the company collapsed? There were allegations of a serious row between the United Kingdom and United States Governments. Could he assure the House that the Government have taken safeguards to ensure that these engine designs and patents do not fall into the hands of overseas creditors and others?

Mr. Price

As was explained to the House on 11th March by my right hon. Friend the Lord President, the Rolls-Royce patents were transferred to the Government so that their use should be safeguarded. Various consequential arrangements are now being worked out, but it is wrong to suggest that there is anything in the nature of a major legal row.

Mr. Rost

What consultations has the Minister had with the new company to try to protect about 10,000 worker-shareholders who have lost a large part of their savings, or to give them some sort of participation in the continuation of the new company?

Mr. Price

As my hon. Friend knows, my right hon. Friend the Minister for Aerospace has this problem very much in mind. But until the Liquidator gets a little further, it is difficult to report anything further to the House.

Mr. Benn

The House is delighted that the contracts have been renegotiated, but could the hon. Gentleman give the House a figure indicating how much public money has been committed by the present Government to Rolls-Royce over and above the sums committed by the previous Government for the same contract?

Mr. Price

The detailed costs will be set out in the White Paper, which will be published as soon as possible.