HC Deb 16 April 1973 vol 855 cc10-2
7. Mr. Whitehead

asked the Secretary of State for Trade and Industry if he is satisfied with the present board of Rolls-Royce (1971) Limited.

The Minister for Aerospace and Ship ping (Mr. Michael Heseltine)

Yes, Sir.

Mr. Whitehead

We appreciate that the recent management upheaval in Rolls-Royce was a matter of personalities as well as policies, but is the Minister aware that there is considerable concern in Derby over recent developments, not merely the removal of Mr. Fawn and the head of the Rolls-Royce Far East office after only five weeks in the job but also the possible transfer of work and management from Derby? Was the hon. Gentleman consulted in advance about the removal of Mr. Fawn? Will he now give the House an assurance that there will be no transfer of RB 211 work from Derby, and that if the company head quarters moves to North-West London those concerned will be properly consulted and not left to glean what they can from the trade Press?

Mr. Heseltine

I was in China at the time of Mr. Fawn's resignation. My hon. Friend the Under-Secretary of State has already told the House that my Department was informed as a matter of courtesy, but Mr. Fawn was not a member of the main board, and therefore I should not expect to be consulted. I realise that there have been rumours about the future of the Derby plant. The management of Rolls-Royce is entirely a question for the board of directors, and I can assure the House that there is no foundation for those rumours.

Mr. Rost

Why has the board of Rolls-Royce (1971) offered only £31 million for assets taken over two years ago which the liquidator of the old company values at £162 million? Why is the new company contesting the tax liabilities which should belong to the old company and its creditors?

Mr. Heseltine

My hon. Friend will appreciate that buyers and sellers often take different views about the price that assets are worth.

Mr. Walter Johnson

Does the Minister realise that the managerial changes taking place in Rolls-Royce are disturbing and are affecting the morale of the staff? Therefore, will he give a categorical assurance today that no work on the RB 211 engine now being performed in Derby will be transferred elsewhere?

Mr. Heseltine

That is a matter on which the board is responsible for fulfilling its contracts with the Government. I am not aware of any major changes that could imply that the hon. Gentleman is entitled to have the doubts that he has.

Sir R. Cary

My hon. Friend should be more than satisfied with the board of Rolls-Royce Motors. I know of no other great company coming to the market for a bid which can charge £5 for its prospectus.

Mr. Heseltine

Regrettably, I cannot take credit for that.

Mr. Edelman

What are the technical and industrial qualifications of the senior civil servant, lately retired, who has become, or is about to become deputy chairman of Rolls-Royce? Should not industrial patronage be exercised at least as fastidiously as political paitronage?

Mr. Heseltine

The qualifications of Sir William Nield are well known. He was a very distinguished civil servant, and is now Deputy Chairman of Rolls-Royce. His qualifications for helping in the strategic direction of that company, with its wide international ramifications, are self-evident.