§ 8. Mr. Whiteheadasked the Secretary of State for Trade and Industry what is the latest information he has from the receiver-liquidator concerning the prospective payment to shareholders in Rolls-Royce Limited; and if he will make a statement.
§ The Minister for Aerospace and Shipping (Mr. Michael Heseltine)The joint liquidators of Rolls-Royce Limited have recently informed creditors and stockholders that there is an estimated potential surplus available for stockholders of just over 40p per £1 stock unit but that this is still subject to a number of uncertainties. The holders of workers' (1955) shares have been repaid at the full par value of their shares.
§ Mr. WhiteheadQuite apart from the reflection that those figures cast on the circumstances of the original bankruptcy, is the hon. Gentleman aware that many workers in the old Rolls-Royce company, and widows and dependants, exchanged workers' shares for ordinary shares at par? Is he also aware that there is something indecent about these people being compensated at no better value than American speculators who bought shares after the crash and now stand to make 4,000 per cent. or more profit on the deal? How much money is going to America under the terms of this payout?
§ Mr. HeseltineI do not have the answer to that question. The allocation of funds is a matter for the liquidator. He has looked into this matter very carefully. The whole question of distribution is for him and not for the Government. I am sure that the whole House welcomes the fact that he has been able to reach agreement with the clearing banks and accepting houses to enable the workers' shares to be repaid. I understand that no formula has been found, and it would not be appropriate for the Government to seek to intervene to find a formula to discriminate between people holding the same shares, although they happen to be employed by the company, as opposed to outside shareholders.
§ Mr. WhiteheadSurely the hon. Gentleman agrees that this is precisely what was said about the worker shareholders—that no formula could be worked out to help them. These are workers holding ordinary shares.
§ Mr. HeseltineIt was very difficult to find such a formula. It depended on the generosity of others who had legitimate claims on the company forgoing some of their claims. Therefore, it did not affect ordinary creditors or the stockholders at large. It was a decision taken by the banks and clearing houses which made it possible.