HC Deb 18 May 1989 vol 153 cc464-6
12. Mr. Colvin

To ask the Secretary of State for Northern Ireland if he will make a statement on privatisation of Short Brothers and the implications for defence sales.

Mr. Viggers

Proposals for the acquisition of Short Brothers plc have now been received from Bombardier and GEC-Fokker and they are being carefully assessed. There will be no change in the relationship between the Ministry of Defence as customer and Shorts as contractor consequent upon the sale of the Government's shareholding.

Mr. Colvin

Although Short Brothers is still over-manned, will my hon. Friend congratulate the company on its recent improvement in productivity? Bearing in mind the importance of the Paris air show next month as a shop window for the aerospace industry, can my hon. Friend assure the House that Short Brothers will be able to exhibit at that show knowing who are its new owners?

Mr. Viggers

The Government are seeking urgently to finalise the arrangements for the move of Shorts o 'the private sector as a single unit, which is our preferred option, but it is not possible at this point to put a specific timetable on that programme. I agree completely with my hon. Friend that the long-term future of Shorts will lie with those who work there. High productivity and competitiveness will be crucial.

Mr. Jim Marshall

Thank you, Mr. Speaker, for calling me twice. May I impress upon the Minister the need to make an urgent decision on the privatisation of Shorts? The Minister will be aware that only some two weeks ago the company—[Interruption.]

Mr. Speaker

Order.

Mr. Cryer

I did not know that they made umbrella material into jackets.

Mr. Jim Marshall

I thought that my hon. Friend the Member for Bradford, South (Mr. Cryer) was in the umbrella business.

The Minister will be aware that a couple of weeks ago Shorts made a decision to make 700 people redundant. It seems to the outsider that a decision has already been taken within the company that it would prefer privatisation with Bombardier. Bombardier said some weeks ago that if no decision was announced publicly within two weeks it would assume that a decision had been made. Can the Minister give an absolute guarantee that a statement will be made within the next two weeks so that we can have a full discussion on the privatisation of Shorts, and Shorts can go to the air show in Paris knowing who its new owners will be?

Mr. Viggers

What I can say is that no decision has been made. I give the hon. Gentleman an assurance that we are pursuing the matter with all possible urgency.

13. Mr. Ashdown

To ask the Secretary of State for Northern Ireland what was discussed at the recent meeting with Bombardier's in Canada; and if he will make a statement.

Mr. Viggers

The visit by my right hon. Friend the Secretary of State to Bombardier Ltd. in Montreal on 2 May was at the invitation of its chairman and took place during his recent programme of commitments in north America. As to the discussions about the bids received for Shorts from Bombardier and GEC/Fokker, they are commercial and confidential.

Mr. Ashdown

Following the Minister's previous answers, I must press him further. Does he realise that there is now—[Interruption.] I long ago learnt to ignore those hooligans masquerading as hon. Members on the Conservative side. [Interruption.]

Mr. Speaker

Order.

Mr. Ashdown

Is the Minister aware that there is now a very serious haemorrhaging of the kind of skilled labour on which Shorts depends as a result of the uncertainty now hanging over the company? Some are going to South Africa, some to the United States and some to Canada. It is true to say that Shorts has put forward its proposals for privatisation and Bombardier has accepted them. What is the delay and does the Minister realise that if the dark cloud of uncertainty hanging over Shorts is not cleared away by the time of the Paris air show the consequence will be a loss of orders and an even more substantial loss of skilled manpower?

Mr. Viggers

All those companies which entered into the negotiations for the possible acquistion of Shorts did so on the basis that the discussions would be handled in a confidential manner, and they must be. I reiterate the assurance that I gave in answer to the previous question. We are closely in touch with the company in question and with the other companies which have indicated an interest in making the acquisition. We will pursue the matter with all possible urgency.