British Technology Group: Privatisation (Hansard, 13 February 1990)

§ Viscount Ullswater
My Lords, the Government consider that it is more appropriate for the British Technology Group to be in the private sector. This would, however, require primary legislation and the timetable would thus depend upon the parliamentary legislative programme.

§ Lord Birdwood
My Lords, I thank my noble friend for that less than fulsome Answer. Does he concede that the Government are guilty of a considerable ideological fracture in holding back the privatisation of this outstandingly successful organisation because they are in favour of other priorities?

§ Viscount Ullswater
My Lords, I agree that the BTG is exceptionally successful and has made great strides in its transfer of technology. However, I cannot say more about the legislative programme nor can I pre-empt the gracious Speech.

The Earl of Halsbury
My Lords, can the Minister confirm that the heartland of the British Technology Group is the old National Research Development Corporation, the vision of the noble Lord, Lord Wilson of Rievaulx, in 1948, and of which I was managing director from 1949 to 1959?

Noble Lords
Hear, hear!

The Earl of Halsbury
My Lords, does my noble friend also agree that all the money advanced for priming the pump has been repaid to the Treasury with cumulative interest; that the company now operates internationally and needs the status of a private company; and that everyone from the managing director downwards is longing for the day when that can be achieved?

§ Viscount Ullswater
My Lorus, I confirm that the group is comprised of the National Research Development Corporation and the National Enterprise Board. In 1981 they came together to form the group. I also confirm that the original loans have been repaid to Her Majesty's Government and that the Government are determined to see the company in the private sector.

§ Lord Taylor of Blackburn
My Lords, my question is completely the opposite. Why should such a successful organisation which has done a great deal of work, be privatised?

A Noble Lord
Loot! Loot!

§ Viscount Ullswater
My Lords, it is considered that its activities are now of a commercial and training nature and that is not appropriate for the public sector.

§ Lord Williams of Elvel
My Lords, is the Minister aware that the Government declared their intention early in April, 1988; they commissioned a report from Coopers & Lybrand on the whole privatisation programme of the BTG; they received the report in July, 1989; and they have done nothing since then? Is it not the case that any company management which has the Sword of Damocles of privatisation hanging over it cannot work properly?

§ Viscount Ullswater
My Lords, I confirm the noble Lord's figures and dates, although the report was received in July, 1988. In his latest annual report, the chairman of the group, Mr. Barker, stated that extensive advice from the BTG council was communicated to the Government and it was in favour of a transfer providing that certain characteristics of the group could be retained.

§ Lord Orr-Ewing
My Lords, will my noble friend bear in mind that high technology needs a most flexible and adroit company? Does he agree that although the BTG did well under the leadership of my noble friend Lord Halsbury, its future depends on attracting the right young people who are much better drawn from the private sector —particularly the international private sector —than from a company which in due course grows old and fuddy-duddy if it is in the public sector?

§ Viscount Ullswater
My Lords, the British Technology Group licenses the technology internationally and shares the income with the inventor. The group does not have its own research and development facilities but acts as an intermediary or broker between the inventor and the end user of the technology.

§ Lord Williams of Elvel
My Lords, will the noble Viscount reject the assertion by the noble Lord, Lord Orr-Ewing that the management of BTG, which has been in the public sector since the noble Earl, Lord Halsbury, was managing director, has become fuddy-duddy? It has been extremely successful and there is no reason why a public sector company cannot recruit proper management at the right price.

§ Viscount Ullswater
My Lords, I certainly say that the management has been extremely active and it is a very successful group.

§ Lord Hailsham of Saint Marylebone
My Lords, with due respect to the knowledge of Greek mythology of the noble Lord, Lord Williams of Elvel, is not the promise of ultimate privatisation less like 1243 the Sword of Damocles and more like a promise of emancipation to a slave?

§ Viscount Ullswater
My Lords, I agree with my noble and learned friend. I believe that it is a spur to better activity.

§ Lord Williams of Elvel
My Lords, perhaps the noble Viscount would care to explain to his noble and learned friend that the emancipation of slaves was not part of Greek mythology.

The Earl of Halsbury
My Lords, the universities' expectation of dividends from NRDC for 1990 is estimated to be £5 million. Is that the estimation of a group with the Sword of Damocles hanging over its head?

§ Viscount Ullswater
My Lords, I believe that that shows the effectiveness of the group.