§ Mr. Leeasked the Secretary of State for Industry if he will arrange to have an analysis published explaining the basis upon which nationalisation compensation is to be paid to Swan Hunter Ltd.
§ Mr. Les HuckfieldCompensation under the Aircraft and Shipbuilding Industries Act 1977 for the unlisted securities of nationalised companies is the net amount of the base value (section 38) less any appropriate deduction (section 39). The base value is related to notional Stock Exchange prices in the six months ended 28th February 1974. As to appropriate deductions, these may arise from the safeguarding provisions of the Act.
Unless there is recourse to the arbitration tribunal, the determination of compensation involves agreement between the stockholders' representative and the Department on this net amount.
However, agreement on individual constituent elements is not an essential part of the negotiation of the net amount of compensation, nor would it facilitate negotiations to require such detailed agreement.
The compensation of £15 million for the Swan Hunter companies was negotiated as a net amount and it is not possible to give a detailed analysis of the composition of the settlement.