HL Deb 03 July 1978 vol 394 cc829-30WA

asked Her Majesty's Government:

What are the sums from which the Government are starting their negotiating in settlement of their compensation to (a) shipbuilding and (b) aerospace companies referred to in reply to a Parliamentary Question in this House of 13th June 1978 (Col. 169).


Negotiations have already opened with some stockholders' representatives and will have been opened by the end of July with all remaining stockholders' representatives who are, or will be, ready to participate in them. Compensation under the Aircraft and Shipbuilding Industries Act 1977 is to consist of base value, derived from an imputed Stock Exchange quotation during the reference period (the six months ending 28th February 1974), less any appropriate deduction falling to be made under the safeguarding provisions of the Act. Although a preliminary view on appropriate deductions had to be taken for the purposes of various payments on account, the amount of the deductions in some cases is by no means clear pending full exploration in negotiations. For this reason it is not possible to put a precise figure on the Government's starting point in negotiations in relation to either the shipbuilding group or the aerospace group of companies. To publish a figure would, moreover, run the risk of misleading the stock market. Nor would it, in the Government's view, facilitate negotiations.