HC Deb 23 June 1986 vol 100 cc24-5W
Mr. Trotter

asked the Secretary of State for Defence what assessment he has made of the comparative implications for the export potential for tanks and other armoured vehicles of (a) selling the Royal Ordnance factories as a single unified company and of (b) selling the Leeds and Nottingham Royal Ordnance factories separately to Vickers plc.

Mr. Lee

The means of achieving the privatisation of Royal Ordnance plc is being considered further following the recent decision not to proceed with a flotation of the whole company this summer.

Mr. Trotter

asked the Secretary of State for Defence if he will make it his policy to sell the Leeds and Nottingham Royal Ordnance factories separately to Vickers plc; and if he will make a statement.

Mr. Lee

As my right hon. Friend the Secretary of State for Defence told the House on 17 June, it remains our intention to privatise Royal Ordnance and we are giving further consideration to the means of achieving this objective.

Mr. Fatchett

asked the Secretary of State for Defence if he will list the direct and indirect costs to his Department of the work involved in arranging for the privatisation of the Royal Ordnance plc.

Mr. Lee

The Comptroller and Auditor General gave details of the Department's costs for the work involved in the incorporation of Royal Ordnance plc in his report on that exercise (H.C. 343). The preliminary estimate for the costs incurred since then for professional advisers on privatisation is about £1 million. In addition, there are, of course, MOD staff costs, but it is not possible readily to quantify these.