VESTING IN ACQUIRED COMPANY OF CERTAIN ASSETS OF PRIVATELY-OWNED COMPANIES IN SAME GROUP (Hansard, 29 July 1976)

§ The Under-Secretary of State for Industry (Mr. Les Huckfield)
I beg to move Amendment No. 39, in page 21, line 29, after 'condition', insert: 'for the purposes of this section'.

§ Mr. Deputy Speaker
With this we can discuss Government Amendments Nos. 40 to 123 inclusive and No. 324.

§ Mr. Huckfield
Before discussing the amendments to Clause 20, which deals with the acquisition of appurtenant assets and liabilities of parent companies, I should like to say a word about the contingent liabilities of British Aerospace, to which I was hoping to refer on Clause 11, which, unfortunately, was not reached because of the timetable. I raise the matter now because the appurtenant asset liabilities may include contingent liabilities of the kind to which I am referring.
It is our understanding that the companies which will vest in British Aerospace have large contingent liabilities related to indemnities given to United Kingdom banks in respect of advance payments by export customers. We do not, in advance of the passage of the Bill, know the details of these liabilities, but they are likely to be substantial in total in relation to the financing limit of £250 million in the Bill. The limits 918 included in the Bill do not include provisions for these contingent liabilities crystallising.
In the unlikely event of one of these contingent liabilities crystallising, there will be an immediate increase in the indebtedness of British Aerospace, which will ultimately be met either by an increase in borrowing from the banks or by the provision of further Government finance. If such an increase exceeded the sums available to British Aerospace at that time under the existing financing limits, the Government would forthwith seek the authority of Parliament for an increase in the limits to meet the situation.

§ Mr. Deputy Speaker
With the agreement of the house 1 propose to read out the Government amendments in the form in which they have been printed. Should I be challenged at any point on any of these amendments, I shall then stop and propose the question.

§ Mr. Heseltine
On a point of order, Mr. Deputy Speaker. May I say for your convenience that the Opposition are prepared to accept Government amendments down to No. 324 without their being read out?

§ Mr. Deputy Speaker
I am grateful to the hon. Gentleman, but I must read out the numbers. I shall do so very quickly.