Airports Bill (Hansard, 2 July 1986)

§ Mr. Robert Hughes
The chairman said quite clearly that pension rights will be protected for those already in employment, although that may not and probably will not be so for new employees.
I am rather concerned that if the information issued at the time of flotation does not contain such an undertaking, there is a possibility that the new owner or owners might claim that the provision was not in the flotation documents and therefore does not apply. The Noble Lord the Earl of Caithness has written to my noble Friend the Lord Underhill on this issue, and he has repeated and confirmed the specific assurances about pension rights.
Unfortunately, the original correspondence from the Department to Sir Norman Payne is not to be generally made available. I should like a twofold assurance on this matter. First, I should like an undertaking that pension rights will continue and that that will be put in the record. Secondly, and more importantly, I should like the Minister to make it clear that in any flotation documents, the undertakings on pensions or any other undertakings given to the employees and staff in relation to conditions of employment, are clear, so that the new owners, whoever 1104 they may be, will be well aware of the assurances and that, when buying shares in the flotation, they are aware of their responsibilities which have been sent to them by the Department of Transport.

§ Mr. Stephen Ross (Isle of Wight)
When the Minister replies, will he confirm that he intends that the articles dealing with flotation should include the golden share condition? That is not written in the Bill, but the Government said in another place and in Committee here that they intended to make that point clear. May we have an undertaking tonight that it will appear in the statements related to the flotation of shares?

§ Mr. Michael Spicer
I can give the assurances requested by the hon. Member for Aberdeen, North (Mr. Hughes) in respect of pension rights. They will appear in the documentation which we shall produce on flotation and there will be an assurance that existing pension rights to which the hon. Gentleman referred will be safeguarded. I hope that that gives the hon. Gentleman the assurance that he was seeking.
I can similarly assure the hon. Member for Isle of Wight (Mr. Ross), that a special share will be retained by the Government for the purpose of limiting the shares held by any one person or institution to a maximum of 15 per cent. of the shareholding.