§ Mr. Eldon Griffithsasked the Secretary of State for Northern Ireland if he will make a statement about Short Brothers' 1979 corporate plan.
§ Mr. Giles ShawThe Government have endorsed the plan, which projects the company's strategy forward to 31 August 1984. It provides for an expansion of the344W company's design, development and production work in its three main areas of activity; aircraft, aircraft components and guided weapons systems. The strategy envisages an increase in output of the successful SD330 commuter airliner and embodies the already announced decision to produce a further developed version, the SD360. The company's work force is expected to increase by some 500 over the period of the plan.
To assist in its assesment of the plan, the Government commissioned an independent study of key aspects. In the light of this study which commented favourably on the feasibility of those aspects of the company's plans, further improvements will be introduced with the objective of achieving the aims set out in the plan, and these should help consolidate the company's trading position at a time when it has a record order book.
The company will be expected to operate within an overall ceiling of public funding of £17.9 million for the period up to 31 March 1983 although it will not be relying entirely on public funds. A sizeable proportion of finance from commercial sources, including the requirement for 1980–81, is already in place or in prospect. The Government's financial commitment to the plan is in addition to the £60 million public investment anounced on 7 December 1978 which has since been fully taken up by the company.
In endorsing the company's latest corporate plan the Government reaffirm that those dealing with the company can do so in the knowledge that the Government, in the last resort, would have to ensure that creditors had their claims fully met.
The overall position of the company will be subject to annual review under the rolling-forward arrangement for the corporate plan.