§ Mr. Teddy Taylorasked the Secretary of State for Industry if he will explain the basis on which a price of £16 million was agreed for the purchase of the shipbuilding, ship repairing and marine engineering interests of the Court Line; what sum was attributable to each company and subsidiary, respectively; and if, in particular, the price was arrived at on the basis of independently assessed up-to-date valuation of the assets.
§ Mr. BennThe £16 million figure was the outcome of a negotiation between the Special Manager, appointed to assist the provisional liquidator of Court Line, and the Department. It was the Government's view that £16 million was a fair price to pay for the share capital of the Court Line subsidiaries that represented its ship-building, ship repairing and associated interests, taking into account the special circumstances of the case and in particular the past trading records of the companies, their future prospects and their net assets; the Government's concern to safeguard the employment of over 9,000 people in assisted areas; and the additional costs of preserving these jobs it the companies had been allowed to go into liquidation.
Almost all of this money was used to repay debts owing by Court Line to the companies that were acquired, and to meet liabilities of Court Line and its travel subsidiaries which had been guaranteed by these companies. The ship-building, ship repairing and associated interests of Court Line were purchased as a group and no value was attributed to the companies individually nor was any independent valuation carried out. However, the price took account of advice given by professional staff of my Department.