HL Deb 14 March 1988 vol 494 cc901-3

2.43 p.m.

Lord Williams of Elvel asked Her Majesty's Government:

Whether it is consistent with the fiduciary duties of the directors of the Rover Group for the Government and Rover not to consider offers for the Rover Group other than from British Aerospace.

Lord Beaverbrook

My Lords, British Aerospace wished to negotiate on an exclusive basis only. The Rover Group board recommended that, taking into account the overall interests of the business, exclusive negotiations with British Aerospace should be pursued. The Government have accepted this advice, provided that negotiations are concluded by the end of April.

Lord Williams of Elvel

My Lords, I am grateful to the noble Lord for his response, which does not exactly answer the Question that I asked. Will he tell the House whether there have been approaches from other parties in respect of the Rover Group during the past six months?

Lord Beaverbrook

My Lords, the Government have undertaken to negotiate with no other parties until the end of April, that is, to negotiate only with British Aerospace. If those negotiations come to a successful conclusion the Government will then consider all relevant factors before accepting the outcome of the negotiations with British Aerospace. As regards other approaches, it would not be appropriate for me to comment other than to say that any exchanges or expressions of interest are commercially confidential.

Lord Diamond

My Lords, is it not a wholly unsatisfactory state of affairs when the Minister is not prepared to come clean—if I may use the phrase—about the Government's intentions with regard to the disposal of a national asset? Does the Minister not recognise that the Government are in the position of trustees and have the duty to try to secure the highest possible price in the interests of the beneficiaries—who are the whole of the British nation? Does he recollect that I raised this matter at the very moment that the original Statement was made? The matter is still not cleared up. Finally, is he aware that in interview after interview the chairman of British Aerospace has made it perfectly clear that he realises the strength of his negotiating position and has said in advance that he is prepared to give very little for the purchase of this company?

Lord Beaverbrook

My Lords, what the chairman of British Aerospace has said to the shareholders of his own company or to the press is one thing. I have already said that the Government will consider all relevant factors before accepting the outcome of negotiations with British Aerospace.

Baroness Seear

My Lords, the Minister told us that the Government would consider the position at the end of April if there had been a successful conclusion to the negotiations. Can he tell the House how he will judge whether or not those negotiations have been successful as they affect the taxpayer?

Lord Beaverbrook

My Lords, as I said at that stage, the Government will have to consider all relevant factors before accepting the outcome of the negotiations.

Lord Williams of Elvel

My Lords, can the noble Lord tell us why other expressions of interest are so commercially confidential? After all, the Rover Group is apparently available for sale. That has been known for some time. Is it not the case that there have been, and continue to be, other expressions of interest, and that these are being pushed aside by the Government? To return to my original Question, is that consistent with the fiduciary duties of the Rover Group directors and the Government?

Lord Beaverbrook

My Lords, I also have seen press reports of other approaches with regard to the Rover Group. The Government have entered into negotiations for the Rover Group with British Aerospace on an exclusive basis. Until the end of April the Government will not negotiate with any other party. The reason why any other approaches are confidential is that they have been made on that basis. We are not prepared to negotiate at this time.

Lord Cledwyn of Penrhos

My Lords, if an offer is made which is better than the British Aerospace offer, would that be a relevant consideration?

Lord Beaverbrook

My Lords, that would certainly be a relevant factor.