HL Deb 06 March 1990 vol 516 cc1045-7

Lord Hatch of Lusby asked Her Majesty's Government:

When they expect to receive the European Commission's report on the conditions of sale of the Rover Group.

The Minister of State, Department of Trade and Industry (Lord Trefgarne)

My Lords, I do not know when the European Commission will reach a decision on this matter but I hope that it will be within weeks rather than months.

Lord Hatch of Lusby

My Lords, is it not the case that the report of the Commission has been in the hands of the commissioner since January? Do the Government expect to receive and publish the report before 22nd March, the date of the by-election? If the Government have not received nor seen the report, why have they not made their own investigations and Statement? It is now public knowledge that the former Secretary of State for Trade and Industry wrote a letter to British Aerospace in which he stated that he could suggest three options to it and was prepared to accept whichever was least likely to be picked up by the European Commission. In other words——

Noble Lords

Speech! Question!

Lord Hatch of Lusby

My Lords, in other words, is it not right that there is a proven case, first, of bribery and, secondly, of the deceit of both the European Commission and the British Parliament?

Lord Trefgarne

My Lords, none of those suggestions is true. The noble Lord's question has an air of déját vu about it. I can do no more than invite him to await the European Commission's report.

Lord Williams of Elvel

My Lords, has there been correspondence between Her Majesty's Government and the Commission about the matter since we last discussed it in this House? If so, will the Government please publish the correspondence?

Lord Trefgarne

My Lords, not that I am aware.

Lord Williams of Elvel

My Lords, can we have an assurance from the Minister that when the Government receive the Commission's judgment he will come to this House and make a full and frank Statement about it and that this time it should be the truth?

Noble Lords

Oh!

Lord Trefgarne

My Lords, Statements made to this House and to the other place on this matter and on all others are always truthful. Therefore, the noble Lord's question does not arise.

Noble Lords

Hear, hear!

Lord Ezra

My Lords, can the Minister tell the House how well the Rover Group has done under the new ownership?

Lord Trefgarne

My Lords, rather better than it did under the old ownership.

Lord Jenkins of Putney

My Lords, is the Minister aware that some of his colleagues sitting behind him were unable to contain their mirth when he described his comments as being truthful? If that continues, the Government's credibility will go into decline. Is it not time that they stood up and admitted what has been taking place?

Lord Trefgarne

My Lords, I do not believe that there was any mirth on this side of the House at the suggestion that we were not telling the truth.

Noble Lords

Hear, hear!

Lord Trefgarne

My Lords, the fact is that the truth has been told in respect of this matter as of all others.

Lord Boyd-Carpenter

My Lords, is my noble friend aware that, far from there being mirth on this side of the House, there was considerable resentment at the implication, made out of order by the noble Lord opposite, that a previous reply was untruthful?

Noble Lords

Hear, hear!

Lord Trefgarne

My Lords, that was the strong impression that I too received.

Lord Hatch of Lusby

My Lords, if the Minister is claiming that the Government always state the truth, is it right that when the Statement on the sale of the Rover Group was first made the Secretary of State and the Government knew that there was to be included in that sale a bribe—we do not yet know the figure—of between £38 million and £68 million? Has he read the letter written by the Secretary of State to the Rover Group which states: On deferment of payment of the £150 million consideration, I can offer three possibilities, in ascending order of risk that the deferment will be picked up by the European Commission, in which case they might require repayment of the notional interest saved"? Was that stated to the House? If not, is it not the case that the House and the Commission were deceived by the Government?

Lord Trefgarne

My Lords, I assure the noble Lord that this Government do not resort to bribery or deception as the noble Lord suggests.

Lord Hatch of Lusby

My Lords, will the noble Lord answer my question?

Noble Lords

Next Question!

Lord Hatch of Lusby

My Lords, was that money which was included in the sale of Rover known to the Secretary of State and to the Government at the time the original Statement was made to this House? If it was not included in the Statement, was that not deceiving the House?

Lord Trefgarne

My Lords, given my earlier Answer, the noble Lord's question does not arise.