Minorco Bid for ConsGold (Hansard, 24 October 1988)

§ Lord Strathclyde
My Lords, my noble friend the Secretary of State will take his decision on the question of the reference of the proposed acquisition by Minorco of Consolidated Gold Fields plc in the light of advice submitted by the Director General of Fair Trading. If he decides that this proposed acquisition raises issues of public interest sufficient to warrant a reference to the Monopolies and Mergers Commission, it will fall to the commission under the Fair Trading Act 1973 to report on whether the proposed acquisition may be expected to operate against the public interest.

Lord Morris
My Lords, I thank my noble friend for that Answer. Bearing in mind that this is the first time he is being interrogated at the Dispatch Box, is he aware that I am about to ask him a question of the most anodyne innocence and simplicity? Have Her Majesty's Government made or received any representations with regard to their concern about the integrity of supply of strategic minerals as it affects the British national interest and, indeed, the interests of other nations in the West?

§ Lord Strathclyde
My Lords, I should like to thank the noble Lord for his kind and encouraging words. As for his supplementary question, of course a large number of representations have been received covering a wide range of subjects, including that of strategic minerals. They will be considered by the Director General of Fair Trading as he sees fit.

§ Lord Williams of Elvel
My Lords, perhaps I may also congratulate the noble Lord on what I believe is his maiden Question at the Government Dispatch Box. Perhaps I may also say what a pleasure it is on our side that my noble friend Lord Callaghan of Cardiff is back in his place.

Noble Lords
Hear, hear‡

§ Lord Williams of Elvel
My Lords, will the noble Lord pass on to his noble friend the Secretary of State our clear view that it is contrary to the national interest that a substantial proportion of the supply of strategic minerals should be in the hands of South African interests?

§ Lord Strathclyde
My Lords, I should like to thank the noble Lord, Lord Williams, for his generosity in congratulating me. I may not always please the noble 1356 Lord in what I say, but he can rest assured that I will always try to do my best. I too should like to say how nice it is to see the noble Lord, Lord Callaghan, back in his usual place.
I shall pass on the noble Lord's remarks to my noble friend the Secretary of State. Consolidated Gold Fields has interests in mining companies in the USA and Australia as well as in South Africa, where it has a 38 per cent. holding in Gold Fields of South Africa Ltd. Minorco has said that it would dispose of that last shareholding if the bid succeeds.

The Viscount of Falkland
My Lords, is it not the case, to use racing parlance, that we have a situation where there has been a stewards' inquiry and there is considerable public unrest, as there has been in the past with major corporate dealings, about at least a likelihood of there having been some irregular happenings and a destabilisation of shareholding in a very large and important company? Have the inspectors who have been put in been given enough time? Is it not important that they should be given enough time, because it is tomorrow, I believe, that the decision has to be made?

§ Lord Strathclyde
My Lords, I should like to thank the noble Viscount for that question. Inspectors were appointed on 19th October under Section 442 of the Companies Act and Section 177 of the Financial Services Act. It is obviously not appropriate for me to comment on investigations by inspectors until their report is to hand. As to the question of time, the inspectors are well aware of the deadline, which is tomorrow, and I am sure that they will have taken that into account.

§ Lord Erroll of Hale
My Lords, does my noble friend not agree that the business should be frozen until the inspectors have reported?

§ Lord Strathclyde
My Lords, again it is for the inspectors, for the Office of Fair Trading and also for the Takeover Panel to take those decisions on how the regulatory process is carried out.

§ Lord St. John of Bletso
My Lords, will Her Majesty's Government bear in mind that ConsGold is already over 38 per cent. South African owned and that it has substantial interests there? is there any evidence that ConsGold has lost business as a result of its South African interests?

§ Lord Strathclyde
My Lords, I am not aware of ConsGold having lost any business as a result of having a 38 per cent. South African interest. However, I think it is worth pointing out to the House that under the Local Government Act 1988 all contracts by local authorities in this country must be let on purely commercial grounds.

Lord Morris
My Lords, following on from the question of my noble friend Lord Erroll of Hale, is my noble friend not aware that if no decision with regard to referral to the Monopolies and Mergers Commission is taken by three o'clock tomorrow afternoon, it is perfectly open to Minorco to further enter the market and further destabilise it with regard to the shares of Consolidated Gold Fields and the underlying British interests therein?

§ Lord Strathclyde
My Lords, of course the Government are aware of the deadline tomorrow. Your Lordships will note that we still have 24 hours to go.