§ 11.5 a.m.
§ THE EARL OF KINNOULLMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they will make a further statement on the Beagle Aircraft Company.]
§ THE MINISTER OF STATE, MINISTRY OF TECHNOLOGY (LORD DELACOURT-SMITH)My Lords, activities at the Rearsby factory have now ceased, but the Receiver and Liquidator is maintaining the sub-contract work at Shore-ham, which employs about 250 of the original 500 staff at that location. Discussions are continuing between the Receiver and a number of parties who have expressed an interest in acquiring all or part of the company's assets, but it is too early to say what the final outcome will be. I am glad to say that agreement was reached with the employee representatives in March on an enhanced redundancy pay settlement, and payments have now been made to all redundant staff on this basis.
§ THE EARL OF KINNOULLMy Lords, while thanking the noble Lord for that full reply, may I ask him whether he can say what protection or consideration is being given by the Government to the design leadership of some of the projects within the old company?
§ LORD DELACOURT-SMITHAs I indicated, my Lords, discussions are continuing between the Receiver and Liquidator, on the one hand, and a number of parties, on the other, who are interested in being able to carry on some part or parts of the Beagle operations and in continuing these types of aircraft in 830 production. But as I have said, the discussions have not yet reached a point at which any further statement can be made.
§ LORD GRANVILLE OF EYEMy Lords, may I ask my noble friend this supplementary question? Does his statement mean that this very good light aircraft has some future? Does his statement also mean that the Government, who have an investment in the company, are interested in the discussions now going on?
§ LORD DELACOURT-SMITHMy Lords, the Government are being kept informed of the discussions by the Receiver and Liquidator, but so far no specific proposals have been put to us. In respect of the Bulldog aircraft. The Receiver is in touch with the Swedish authorities and with those companies which have expressed an interest in these contracts; and we shall consider sympathetically any proposals which are put to us. Special arrangements have also been made with the Receiver to ensure an adequate supply of spares for the R.A.F. Basset aircraft.
§ THE EARL OF KINNOULLMy Lords, would the Minister agree that if the Government could consider offers for viable parts of the Company, which I understand have been made from a number of quarters, this would in fact assist in the continuation of work?
§ LORD DELACOURT-SMITHMy Lords, I am not quite sure what is meant by "the continuation of work". If indeed another company makes a purchase of some of the assets of the Beagle Company, the way in which that company chooses to make use of those assets and the location at which they make use of them is, of course, a matter for the company making the purchase.
§ LORD GRANVILLE OF EYEMy Lords, does this mean that as there are overseas companies negotiating for these assets this aircraft will be produced overseas, or will it be produced in this country?
§ LORD DELACOURT-SMITHMy Lords, I do not think I can add anything to what I have said already on this point.