HL Deb 02 March 1992 vol 536 cc572-4

3.1 p.m.

Lord Peyton of Yeovil asked Her Majesty's Government:

Whether in disposing of the assets of the British Technology Group they will ensure that the core, and effective control of the business, remains in the United Kingdom.

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Reay)

My Lords, the Government have applied rigorous criteria in the privatisation of BTG in order to safeguard the continuation of BTG's core business of technology transfer. These include a government special share for a five-year period entrenching limitations on individual shareholdings and asset disposals. In addition, the Articles of Association will provide for a CVCP director and another director experienced in commercialising public sector research. Beyond that, it would be up to the newly privatised company to select the board and management it judges most suitable to promote the commercial future of the company.

Lord Peyton of Yeovil

My Lords, while I am mildly grateful to my noble friend for that Answer, is he aware that there is considerable anxiety among those most closely concerned and knowledgeable about this affair that, in handling what is a very valuable asset, the Government will disregard the long-term aspects of the matter and will be unduly influenced by short-term issues? I hope very much that my noble friend will inform his right honourable friend in the department and perhaps his right honourable friends in the Treasury of that anxiety.

Lord Reay

My Lords, I am happy to give my noble friend an assurance that I shall pass on to my right honourable friend my noble friend's intervention. We have always made it clear that we intend to sell BTG to the right consortium—that is to say, one which will take a long-term view and which satisfies us that it will continue BTG's traditional technology transfer activities.

Lord Williams of Elvel

My Lords, does the noble Lord recall that, when the Bill was before your Lordships, a value of about £50 million was placed on BTG? Is it not the case that the Government have received three bids—for £13 million, £17 million and £23 million—none of which comes to even half the estimated value when the matter was before your Lordships' House? Given those facts and all the worries about the whole matter, would it not be better for the Government to call the whole silly thing off?

Lord Reay

My Lords, I cannot agree with the noble Lord. There are two consortia bidders with whom we are now negotiating. I cannot reveal any further details as the discussions are continuing and they are confidential.

Lord Stoddart of Swindon

My Lords, I am rather surprised at that reply. Why will the Government not give details of the bidders? Does the Minister agree that it is essential that we should know exactly who they are, what they are and what they intend to do? Are not the public entitled to the utmost information?

Lord Reay

My Lords, each individual consortium is free to disclose who are its individual members. It would be wrong for me to do so prematurely. I believe that the composition of each consortium is not yet firmly agreed in each case and the discussions must remain confidential.

Lord Williams of Elvel

My Lords, can the noble Lord be a little more forthcoming? Originally there were three consortia and one of them has a strong American influence. Has that particular consortium now been ruled out?

Lord Reay

My Lords, as I said, there are two consortia bidders with whom we are now negotiating. One consortium is led by the management of BTG and the other is an Anglo-American consortium.

Lord Peyton of Yeovil

My Lords, I do not want to add to my noble friend's difficulties, but can he imagine any foreign country disposing of a similar asset to our benefit and allowing us similar participation?

Lord Reay

My Lords, BTG is being sold to a consortium and not to a single company or institution so no individual member of a consortium will be allowed to have overall control of BTG. Perhaps I may add that even today 80 per cent. of BTG's licensed income comes from overseas. Therefore it could be argued that it is in BTG's interests to have an overseas involvement.

Lord Glenamara

My Lords, can the noble Lord's original Answer be summarised by the simple word "no"?

Forward to