HL Deb 15 May 1990 vol 519 cc156-8

3.23 p.m.

Lord Williams of Elvel asked Her Majesty's Government:

What is their most recent information about the attitude of the European Commission to the terms of the acquisition by British Aerospace plc of Rover Group plc.

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

My Lords, the European Commission has not concluded its inquiry into the terms of the sale of the Rover Group to British Aerospace and we have not, therefore, had any indication of its views on the matter.

Lord Williams of Elvel

My Lords, I am grateful to the Minister for his Answer so far as it goes. Does he not agree that it is profoundly unsatisfactory that a major British public company may have to return large sums of money to the Government and that there are allegations flying around that Parliament was misled and that there was government subterfuge? Does the Minister further agree that none of these matters can be resolved until the Commission pronounces? Can he confirm that the Government will do everything in their power to hasten that decision and make sure that we can debate these matters in the open light of full knowledge?

Lord Trefgarne

My Lords, the Government have no power over the Commission in this matter. We shall just have to wait in patience.

Lord Boardman

My Lords, does my noble friend expect that the European Commission will share the pleasure of the British taxpayer who sees this company, which for so long lost money in the public sector, now making money in the private sector and also making very good cars?

Lord Trefgarne

My Lords, my noble friend makes a powerful point. It is one that I have ventured to make to your Lordships in the past.

Lord Hatch of Lusby

My Lords, does the noble Lord realise that even before the publication of this long-delayed European Commission report two things were established: first, that the previous Secretary of State misled both Parliament and the Commission; and, secondly, that the Government have been conducting their business by bribery, euphemistically known as "sweeteners", which is hardly in accord with the British tradition of parliamentary democracy?

Lord Trefgarne

My Lords, I think your Lordships may agree if I suggest that the only place where those matters have been established is in the mind of the noble Lord.

Lord Molloy

My Lords, there have been articles in the newspapers.

Noble Lords

Order!

Lord Harmar-Nicholls

My Lords, my noble friend said that we have no authority over the Commission. As distinct from the European Parliament and possibly the Council of Ministers, can he tell me what power the European Commission has under the Treaty of Rome to express an attitude on the internal decisions of any member state?

Lord Trefgarne

My Lords, the Commission is undoubtedly entitled to inquire into this matter under the terms of the Treaty of Rome and to express a view which we understand it will shortly give.

Lord Bruce of Donington

My Lords, will the noble Lord reconsider the answer that he gave to a previous question in which he indicated that there was no evidence of any duplicity in this matter? Has the noble Lord read the correspondence from the previous Secretary of State to British Aerospace in which alternative means of misleading Parliament as to the true nature of the purchase consideration are fully and clearly set out? Can the Minister say what the Government intend to do about that?

Lord Trefgarne

My Lords, I repeat to the noble Lord that there has never been any question of seeking to mislead Parliament.

Lord Hailsham of Saint Marylebone

My Lords, would it not be better if we awaited the report which, as my noble friend has said, will shortly be forthcoming before we attempt to establish points?

Lord Trefgarne

My Lords, I certainly agree with my noble and learned friend that it would be much better to wait on the report from the European Commission before commenting on it.

Lord Cledwyn of Penrhos

My Lords, further to the very proper point made by the noble and learned Lord, can the Minister give an assurance to the House that when the report is published a Statement will be made in both Houses?

Lord Trefgarne

My Lords, it is not for me to decide on such matters. However, I shall be very surprised indeed if that did not happen.

Lord Hatch of Lusby

My Lords, the noble Lord has suggested that the assertions I made are only in my mind. I repeat the question asked by my noble friend Lord Bruce of Donington: has the noble Lord read the correspondence which is in the Library and which indicates quite clearly that the previous Secretary of State was offering alternative means of duplicity to British Aerospace when he wrote to it? That correspondence is in the Library and not in my mind. Has the Minister read it?

Lord Trefgarne

My Lords, I suggest to the noble Lord that he takes the advice of my noble and learned friend and awaits publication of the report.

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