§ Mr. Prescottasked the Secretary of State for Transport how many shares the Government own in the new company that has just purchased Sealink; under what circumstances or conditions the Government will use their veto on the policy of that company; and if he will make a statement.
§ Mr. RidleyI am the holder of a £1 preference share in Sealink UK Ltd., and this has rights attaching to it 555W requiring that all of the company's ships that are for the time being subject to the power of requisitioning for defence purposes shall be kept available for that purpose. There is a further requirement that the company may not dispose of the whole of the undertaking, or more than 25 per cent. of its fleet as it exists from time to time, without my consent.
It has been the Government's clear intention that these arrangements should not interfere with the commercial operations of the company. To give substance to that policy I will be exchanging undertakings with the purchaser:
He will ensure that the rights attaching to the preference share are upheld, and if he sells, or relinquishes control of the company, will procure a similar undertaking to me from the new purchaser, or will seek my consent to the terms of the sale.
I, for my part, will undertake that no consent to a variation in the rights attaching to the preference share, or to a release from the purchaser's obligations under his undertaking, will be withheld, nor will any restriction on the management of Sealink by its shareholders and directors be imposed, except where I believe such action to be necessary in the interests of national defence.
I am arranging for the full texts of the relevant article of association of Sealink UK Ltd., and of the undertakings, to be placed in the Library on completion of the sale.