§ Mr. Shoreasked the Secretary of State for Defence what arrangements he is making when privatising publicly owned shares in the royal ordnance factories to ensure that the factories remain in majority British control.
§ Mr. ButlerAs the Government have already made clear, before any shares in the new royal ordnance company are sold to the public there will be incorporated in the articles of association of the company provisions limiting the aggregate of all shares which may be held by persons who are not British citizens to 15 per cent. of the total issued share capital. (The company will be engaged492W in the production of arms, munitions and war material, and these provisions will therefore be permissible under article 223 of the Treaty of Rome.)
§ Mr. Shoreasked the Secretary of State for Defence what was the profit of the royal ordnance Factories in the year immediately preceding privatisation.
§ Mr. ButlerFor the year ended 31 March 1984, the trading fund accounts of the royal ordnance factories' organisation which were laid before Parliament on 20 July 1984 showed an historic cost surplus, including interest receivable relating to trading operations, of £66.7 million. After deducting interest payable on loans, the total surplus was £66.3 million.
The date for introducing private capital into an incorporated ROF organisation has not yet been determined.
§ Mr. Carter-Jonesasked the Secretary of State for Defence if he will make a statement on policy on protection of the pensions of the work force at the royal ordnance factories prior to consideration of the House of Lords amendments to the Ordnance Factories and Military Services Bill.
§ Mr. ButlerStaff who are transferred from the Civil Service will not be able to remain in the principal Civil Service pension scheme. A new royal ordnance factory company scheme is therefore being devised and it is our intention that it will provide comparable benefits to those of the PCSPS, including provision for index linking. The proposed scheme will be governed by trust deeds and will be fully funded in respect of the employees' past service with the Crown. Consultations with the trade unions on superannuation arrangements in the new company are continuing.
§ Mr. Carter-Jonesasked the Secretary of State for Defence if he will make a statement on policy on redundancies in royal ordnance factories prior to the consideration of the House of Lords amendments to the Ordnance Factories and Military Services Bill.
§ Mr. ButlerAt some of the royal ordnance factories, forecast work loads are giving rise for serious concern, and it is likely that numbers will have to be reduced. All possibilities for additional work are being explored and no final decisions have yet been taken.