HC Deb 19 February 1970 vol 796 cc176-7W
Mr. Conlan

asked the Minister of Technology whether he will make a further statement regarding his policy regarding the creditors of Beagle.

Mr. Benn

The Government's acquisition of Beagle Aircraft Ltd. arose very largely out of the Plowden Committee's recommendations in 1965. The Committee then took the view that light aircraft manufacture merited Government assistance but added that the case for continuing assistance should be reviewed from time to time against the industry's progress in achieving self-sufficiency. It is against this background that the Government provided substantial financial support to the company when it was in private ownership and subsequently acquired the whole undertaking in 1968 in the declared hope that a British light aircraft industry could thus be preserved.

In my statement on 2nd December, I explained the reasons underlying the Government's decision that further support for Beagle would not be justified. A receiver and manager was appointed who has since found it necessary to reduce the work force substantially and is now considering disposal of the business and closure of the company.

The unique circumstances of Beagle's acquisition by Her Majesty's Government and its present position have led the Government, after considering all the aspects of this matter, to decide to meet the company's liabilities in full. It is accordingly proposed to liquidate the company by a members' voluntary winding-up.