§ Mr. Peter Lloydasked the Secretary of State for Industry if he will take steps to amend the Aircraft and Shipbuilding Industries Act 1977, in order to offer those companies that were nationalised an alternative basis of compensation, based on net maintainable revenue, in addition to the formula laid down in the Act; and if he will make a statement.
§ Mr. Adam ButlerThe present Administration are not responsible for the 1977 Act, and strongly criticised its proposed provisions when in opposition. Nonetheless the ownership of the nationalised companies was effectively transferred to the Government from 17 March 1975, the date of the previous Administration's safeguarding statement, and the Act related compensation to Stock Exchange prices in a six-month reference period ended 28 February 1974. The Government recognise that in the light of the subsequent events the compensation terms may be considered to operate unfairly for certain companies and have great sympathy with stockholders who believe that they are treated harshly on this account. However, any retroactive amendment of these terms would raise very difficult issues, produce a host of new unfairnesses and further delay the final settlement of compensation.