§ Mr. Meadowcroftasked the Secretary of State for Defence what indication he was given prior to the purchase of the royal ordnance factory, Leeds, by Vickers as to the level of subsequent redundancies; and if he will make a statement.
§ Mr. Archie HamiltonAt the time of the planned flotation in the summer, the Government were fully aware that, with limited prospects for further MOD orders for main battle tanks, the Leeds factory faced possible closure within a few years. In the short term, we were also aware that Royal Ordnance was having to contemplate significant redundancies. It therefore came as no surprise that Vickers viewed prospects in a similar light. As my right hon. Friend the Secretary of State for Defence indicated on 24 July 1986, at column621, he expected the new factory Vickers undertook to build on the site to employ most, but not all, of the existing work force. At that stage it was not possible for Vickers to be precise about the level of of possible redundancies but it did not hide from us or from the work force that redundancy was inevitable if the future of the site was to be assured.