HC Deb 19 November 1984 vol 68 cc54-5W
Mr. Nicholas Brown

asked the Secretary of State for Trade and Industry if he will make a statement about British Shipbuilders' own redundancy scheme and the position regarding the eligibility for a payment under the scheme of those employees who are transferred to the private sector, following the implementation of the Government's announcement of the sale of the warship yards.

Mr. Butcher

The shipbuilding redundancy payments scheme is governed by the Shipbuilding (Redundancy Payments) Act 1978 which within Great Britain restricts payments to employees of British Shipbuilders and its wholly owned subsidiaries. Accordingly those employees who work for the warshipbuilding yards to be privatised will not be eligible for scheme benefits if they are made redundant after privatisation.

Mr. Nicholas Brown

asked the Secretary of State for Trade and Industry if he intends to (a) retain British Shipbuilders' own redundancy scheme for the state-owned part of the industry and (b) extend the scheme so that it covers former British Shipbuilders' employees whose yards have been transferred to the private sector, in the event of them then being made redundant.

Mr. Butcher

The shipbuilding redundancy payments scheme will expire on 30 June 1985 under existing legislation. I am presently considering the prolongation of the scheme beyond that date.

I do not intend to extend the scheme to cover employees of those yards transferred to the private sector.