§ Mr. Dellasked the Secretary of State for Trade and Industry whether the statement of the Under-Secretary of State for Trade and Industry in the OFFICIAL REPORT, Volume 850, for 13th February 1973, column 1247–8, as to the liability of the Government in the event of a liquidation of Rolls-Royce (1971) Ltd. represents a specific commitment, in relation to any debts, of a kind referred to by the then Chief Secretary to the Treasury in OFFICIAL REPORT, Volume 832, 7th March 1972, column 282–3; and whether this commitment has been previously given.
§ Mr. OnslowThe present interim capital structure of Rolls-Royce (1971) Ltd. does not reflect fully the nature and extent of the company's business, but an appropriate capital structure cannot he determined until the price for the aeroengine assets bought from the receiver of Rolls-Royce Ltd. is known. This present interim situation, in which the company is trading normally but without an appropriate capital structure, means, as I made plain in the House on 13th February, that the Government will ensure that the debts of the company are met in the extremely unlikely event of a liquidation. When the company is given an appropriate capital structure, the Government will review the extent, if any, to which this specific commitment will continue, and they will, of course, ensure that any change in their position is made clear.—[Vol. 850, c. 1247–8.]