Ferranti Limited

HC Deb 07 July 1980 vol 988 cc13-5

8. Mr. Marks

asked the Secretary of State for Industry when he expects to make an announcement on the conditions he will impose on the sale of Ferranti shares by the National Enterprise Board.

24. Mr. Charles R. Morris

asked the Secretary of State for Industry what guidance of direction he proposes to give to the National Enterprise Board in relation to the sale of the National Enterprise Board's 50 per cent. shareholding in Ferranti Ltd.

Mr. Adam Butler

I have nothing to add to my right hon. Friend's statement of 1 July.

Mr. Marks

The Secretary of State was not very clear about the conditions he would impose on the sale of the 4 per cent. of shares to the work force. Will he have any objections to the purchase of shares by groups of workers? Will he have any objections to the representation at annual meetings of those workers by their trade unions?

Mr. Butler

It is true that the details of the proposed scheme have not been worked out. This will be done in consultation between the Department and the National Enterprise Board and the company. With regard to representation at the annual general meeting, the purchaser of a share, irrespective of whether it is held in trust, under the Finance Act, for instance, will be able to attend and vote in the normal way.

Mr. Morris

In the light of the exchanges which took place on the Secretary of State's statement on the Ferranti company, has the Minister given further consideration to the adequacy of the 4 per cent. shares allocated for distribution to the 17,000 employees and staff of the company, who make such a signal contribution to its success?

Mr. Butler

I think that the amount of shares, which is 2 per cent. of the total, and at the valuation of 530p equivalent to about £2¼ million, will be sufficient.

Mr. Archie Hamilton

Will my hon. Friend also consider putting the same conditions on those shares sold to the employees—of their not being able to sell them for two years—as will be the case with the institutions?

Mr. Butler

As I have told the House, we have not yet worked out the proposals, but if, for instance, those shares were put in trust under the relevant Finance Acts, they would have to be held for two years.

Mr. McNally

While acknowledging that the Minister of State has to operate under the ever-ambitious shadow of the hon. Member for Knutsford (Mr. Bruce-Gardyne), may I ask whether he will concede to the House that, without the intervention of the Labour Government to save Ferranti, the country would have lost a major advanced industry, and the similar companies which could be of service to the country in the future will be left naked in similar circumstances by the present Government's philosophy?

Mr. Butler

We had a long question and answer session following my right hon. Friend's statement. I think that these points were covered and I have nothing to add to them.

Mr. Bruce-Gardyne

Just to set the record straight, may I ask my hon. Friend whether he agrees that, had there been greater reassurance in the private sector that those who might have come to the aid of Ferranti when it ran into trouble would be allowed to undertake the necessary rationalisation of the transformer business by the then Labour Government, there would have been no need for the NEB in the first place?

Mr. Butler

I think that my hon. Friend speaks truth, as so often on these occasions. We certainly hope that in the future the private sector will be able to cope with these situations.