Plessey (Hansard, 15 March 1989)

§ 12. Mr. Colvin
To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the GEC/Siemens bid for Plessey.

§ Mr. Newton
The bid by GEC/Siemens for the Plessey company is being examined by the Monopolies and Mergers Commission which is due to submit its report to my right hon. and noble Friend the Secretary of State by 10 April It would be inappropriate for me to comment on the bid in advance of the publication of the commission's report.

§ Mr. Colvin
Is my right hon. Friend aware that GEC has a history of growth through takeover rather than through research into and development of its own products? Therefore, the prospect for the workers and output of the company's two research centres at Roke Manor in my constituency and at Caswell near Daventry—I am pleased to see my hon. Friend the Member for Daventry (Mr. Boswell) in the Chamber—is very much worse under a Plessey carve-up than it would be under the existing management and ownership of that company.

§ Mr. Newton
I think that my hon. Friend will understand that I can do no more than note his comments. I am sure that he will accept that it would be inappropriate for me to comment on them.

§ Mr. Tim Smith
Does my right hon. Friend agree that, because GEC and Plessey are major suppliers to the Ministry of Defence and because such competition is vital, the taxpayer has a major interest in this matter? Will he confirm that when decisions are taken, the taxpayers' interest is taken fully into account?

§ Mr. Newton
I can confirm that when my right hon. and noble Friend the Secretary of State considers these matters he will take account of everything in the commission's report and the advice of the Director General of Fair Trading. I am not willing to be drawn beyond that.

§ Mr. Campbell-Savours
If the Secretary of State is to take these matters into account, will he, in the taxpayer's interest, ask Peter Levene, who is in charge of defence procurement, and all the people responsible in the contracts division of the Ministry of Defence, what they think, especially as that Department is trying to move more contracts over to a competitive-based system? If that takeover move were made in the form in which some people think it should be made, that may well act counter to this proposition.

§ Mr. Newton
The House will recognise the difficulties that I face in answering supplementary questions on such a matter at this time. I cannot add to what I have already said.