§ Mr. Michael Marshallasked the Secretary of State for Northern Ireland if he will make a statement about Short Brothers' 1980 corporate plan.
§ Mr. PriorThe Government have endorsed Short Brothers' strategy, which emerged from its 1980 corporate plan. This strategy envisages the continued development of the three sides of the company's business: aircraft, aerostructures and guided missiles. In particular the company will accelerate and expand production of the SD360 commuter airliner.
Following Government approval to external borrowings of £30 million for the year ending 31 March 1981, further approval has been given for the company to operate within a cumulative external funding limit of £78 million for the period ending 31 March 1983. Within this amount, as announced last year, public funding of £17.9 million will be made available in the period 1 April 1981 to 31 March 1983. Commercial sources will therefore provide the greater proportion of the increased funding required to finance the approved strategy.
In endorsing the company's acceleration strategy, the Government reaffirm that those dealing with the company can do so in the knowledge that the Government, in the last resort, would ensure that creditors had their claims fully met.