HC Deb 17 April 1972 vol 835 c6
5. Mr. Rost

asked the Secretary of State for Trade and Industry when he expects to conclude the negotiations and agree with Rolls Royce Limited a figure for the payment for the nationalised assets and goodwill.

Mr. Michael Heseltine

Rolls-Royce (1971) Ltd. and the Receiver have recently announced that they have been unable to agree a price by negotiation. In accordance with the sale agreement, therefore, the matter is being referred to an independent expert whose decision will be binding. I cannot at present forecast when a conclusion may be reached. The valuation process must be carried out with care, but I appreciate the urgency stressed by hon. Members.

Mr. Rost

In welcoming my hon. Friend to his new position as Minister for Aerospace, may I ask him what proportion of the price offered by the Government for the acquisition of the assets included goodwill and expenditure on research and development on the RB 211 engine? If the negotiations broke down, did they do so because it was felt that the Government had not offered a fair price?

Mr. Heseltine

I believe that the price agreed for the RB 211 was £1 and that it was accepted by both parties in recognition of all the circumstances of the time.

Mr. Dalyell

Have all the parties agreed that the expert's opinion shall be binding?

Mr. Heseltine

That is a provision of the contract.