§ Mr. Michael McNair-Wilsonasked the Minister for Aviation Supply if he will now make a statement about the proposed reconstruction of Short Brothers and Harland Limited.
§ Mr. CorfieldI have been asked to reply.
As I informed the House on 10th February, the Rolls-Royce position introduced a new factor into our consideration of the reconstruction of Short Brothers and Harland Ltd. If the RB211 project were to be abandoned, the cessation of podding work now subcontracted to Short's would entail severe retrenchment including further regrettable redundancies. Nevertheless, Her Majesty's Government and the Northern Ireland Government, after studying the forecasts made by the company, accept the view of the chairman of the company that the undertaking can remain commercially viable whether or not the RB211 continues.
The two Governments accordingly intend to negotiate for the reconstruction of the company in order to put its financial structure, which has become unbalanced as the result of successive Government loans, into a basis suited to an independent commercial company operating in a highly competitive market; action to this end must, however, await the decision on the RB211.
The redundancies announced today by the management of Short's in areas unconnected with the RB211 coupled with the continuing negotiations about that engine must cause anxiety among the staff of the company. I am, therefore, glad to be able to offer this assurance that Short's nevertheless can look forward to weathering the storm.