Company Ownership and Control (Hansard, 19 May 1992)

§ Lord Sefton of Garston
My Lords, I thank the noble Baroness for that Answer. That was in line with government statements which are made now and again to the effect that they are not in the business of picking winners. Does the noble Baroness accept from me that there are some people in this country who believe that as regards the north of the country and its industry and manufacturing processes, the Government are not prepared to back or pick winners, but that in the South-East of England the Government are quite prepared to throw money at the problem affecting developers of office properties which contribute nothing at all to the wealth of this nation? Is the noble Baroness further aware that a leading Member of this House, who is a leading industrialist, has just pointed out to the Minister for Industry—which I believe is his title—that 38 per cent. of our industry is now owned by foreigners, and that if that continues much further, we shall be economic colonials?

§ Baroness Denton of Wakefield
My Lords, I believe that the noble Lord is grossly unfair concerning the Government's support for manufacturing industry for the country north of Watford. I simply draw the noble Lord's attention to the fact that since 1979 this Government have supported the aerospace industry with £1.3 billion.

§ Lord Williams of Elvel
My Lords, is the noble Baroness aware that regarding all the companies to which my noble friend referred, there seems to be something called "a golden share" which allows the Secretary of State to determine whether those companies should change ownership? Is she further aware that in the course of the past few years the concept of the golden share has been somewhat eroded in the sense that Jaguar, for instance, can be sold to Ford, and the Secretary of State relinquishes the golden share? If taxpayers' subsidies of doubtful legality are going to be offered to companies such as those mentioned by my noble friend, including the Rover group, is it not right that the Government should make sure that these companies continue to be in United Kingdom ownership?

§ Baroness Denton of Wakefield
My Lords, I thank the noble Lord, Lord Williams, for that question. I should like to set the record straight. As it was made clear at the time of the privatisation of British 550 Aerospace, the Government's special share does not grant any powers to direct or influence the commercial strategy of that company. The main purpose of the special share is to prevent the British Aerospace group passing into foreign control because of its position as a major supplier to the Ministry of Defence. The group's corporate jet division manufactures the 125 executive jet. Foreign share ownership is restricted to 29.5 per cent. As the noble Lord also raised the question of the Rover group, I point out that the conditions of sale included the need to repay up to £400 million to Her Majesty's Government in the event that British Aerospace decides to sell the Rover group or its principal subsidiaries or its trademarks within five years of the date of agreement. I believe that we were looking after the taxpayers' money very well.

§ Lord Sefton of Garston
My Lords, can I take it that the answer from the noble Baroness is that the Government intend to do nothing at all to prevent these firms going into foreign ownership?

§ Baroness Denton of Wakefield
My Lords, the noble Lord can take it that the answer from the noble Baroness is that we are very anxious indeed about the position of industry in this country. The resource which allows our industry to continue and for new models to be developed will be focused on with fierce concentration.