HC Deb 10 February 1971 vol 811 cc159-61W
8. Mr. Onslow

asked the Minister of Aviation Supply if he will now make a further statement on the finances of Rolls-Royce.

Mr. Corfield

I have nothing to add to my statement of 4th February and to the speeches that my right hon. Friend and I made in the debate on 8th February. So as to avoid any possibility of misunderstanding, I would like to amplify one of the points I made on Monday about the Air Holdings arrangements. There are 110 firm orders for the L1011 and 68 options. Eleven of the 50 Air Holdings Aircraft are firmly ordered, and the other 39 count as options. My remarks on Monday might be read implying that all 50 count as options.—[Vol. 810, c. 1922–35; Vol. 811, c. 41–108]

28. Mr. Harold Lever

asked the Minister of Aviation Supply what steps the Government took when they had decided that they could not support the RB211 project to secure terms for the release of Rolls-Royce from its obligations so as to avoid the appointment of a Receiver and the damage to British interests that will result from this.

Mr. Corfield

The Government invited the American Government and Lockheeds to consider what action they might take.

Mr. Whitehead

asked the Minister of Aviation Supply what steps the Government took when they had decided that they could not support the RB211 project to secure terms for the release of Rolls-Royce from their obligations so as to avoid the appointment of a Receiver and the damage to British interests that has resulted from the bankruptcy of Rolls-Royce.

Mr. Corfield

The Government invited Lockheeds and the American Government to consider what action they might take.

Mr. Whitehead

asked the Minister of Aviation Supply what is the position of claims for industrial injury which may be brought by employees of Rolls-Royce Limited during the period that this company is in the hands of the Receiver.

Mr. Corfield

Employees could pursue against the Receiver any claims in damages for injury in respect of events occurring while the business was in his hands. Rights to benefits under the National Insurance (Industrial Injuries) Acts are unaffected.

Mr. Whitehead

asked the Minister of Aviation Supply what steps will be taken, if the RB211 contract is not proceeded with, to ensure that the skilled design teams at Derby are not broken up and lost to the British aircraft industry.

Mr. Corfield

I will ensure that the Receiver is fully aware of the importance of this point. But I can give no guarantees about where redundancy will fall.

Mr. Whitehead

asked the Minister of Aviation Supply whether the Receiver will be instructed not to receive foreign bids for the automobile division of Rolls-Royce Limited, or any other subsidiary of the company not taken into public ownership.

Mr. Corfield

We all hope that Rolls-Royce cars will remain British, but I have no powers to instruct the Receiver.

Mr. Whitehead

asked the Minister of Aviation Supply when he was informed, respectively, that Rolls-Royce Limited could, under no circumstances, escape the penalty clauses relating to delays in meeting production specifications for the RB211 engine, and that the loss on each engine supplied would be far in excess of the figures given in November 1970.

Mr. Corfield

My Department was informed of the additional engine loss on 26th January. The liability for penalties has always formed part of the contract.

Mr. Whitehead

asked the Minister of Aviation Supply what is his estimate of the present number of holdings in the workers' share scheme of Rolls-Royce Limited; and what the future of this scheme will be under public ownership.

Mr. Corfield

About 9,500.

The Government will consider very carefully the position of the holders of workers' shares, but it is a matter which raises considerable problems and I cannot go further at this stage.

Mr. Whitehead

asked the Minister of Aviation Supply whether he intends to acquire the Nuclear Division of Rolls-Royce, located in Derby, under the powers he is seeking in the Rolls-Royce (Purchase) Bill.

Mr. Corfield

The Government will acquire whatever nuclear assets are necessary in the national interest.