HC Deb 29 March 1976 vol 908 cc362-3W
Mr. Trotter

asked the Secretary of State for Industry what was the parent company of Greenwell's ship repair business at Sunderland before it was transferred to North East Coast Ship-repairers; what was the value placed on the business; what was the consideration for the transfer; for what reason it was made; whether it was made with his knowledge; and whether he is satisfied that the transfer has been successful in general and for the Greenwell employees in particular.

Mr. Kaufman

Prior to its transfer to North East Coast Shiprepairers Ltd. the Greenwell's ship repair business was carried on by the T. W. Greenwell Ship-repair Division of Doxford and Sunderland Ltd.—now Sunderland Shipbuilders Ltd. No separate valuation was put on Greenwell's when Court Line took over Doxford and Sunderland Ltd. A consideration of £426,000 was paid by North East Coast Shiprepairers to Sunderland Shipbuilders for the book value of the net current assets of the company when Court Line transferred the Greenwell's business to NECS. Court Line decided to put Greenwell's under the control of NECS to facilitate the grouping of its ship repair activities, thus separating them from their shipbuilding interests. Court Line was under no obligation to consult my Department about the transfer of the business. The report I have just received from Touche Ross & Co. on the proposed closure of Greenwell's concluded that the company had benefited rather than suffered from being a part of NECS.

Mr. Trotter

asked the Secretary of State for Industry whether there has been or is to be a transfer of the Greenwell's business or assets away from North East Coast Shiprepairers; if so, at what valuation; for what consideration; and for what reasons.

Mr. Kaufman

None of the assets owned by Greenwell Drydocks Ltd. has been, or will be, transferred away from North East Coast Shiprepairers Ltd. Most of the land, buildings and operating plant used by Greenwell's is leased to it by Sunderland Shipbuilders Ltd.

Mr. Trotter

asked the Secretary of State for Industry what is to happen to the employees of the Greenwell ship repair yard at Sunderland which are state owned.

Mr. Kaufman

The report on the proposed closure of Greenwell Drydocks Ltd. prepared by Touche Ross & Co. makes it clear that there are no commercial grounds for keeping the yard open, and it will therefore close at the end of March. The workforce of Greenwell Drydocks will be made redundant by the closure. Some may find employment in shipbuilding or shiprepairing on Wearside or Tyneside, but prospects at present are not good owing to the recession in these industries.

Mr. Trotter

asked the Secretary of State for Industry what is his estimate of the costs arising as a result of the closure of the State-owned Greenwell's ship repair yard at Sunderland.

Mr. Kaufman

The information sought will be found in Sections 8, 9 and 10 of the Touche Ross Report, which is available in the Library.