§ Mrs. Dunwoodyasked the Secretary of State for Defence how he will satisfy himself that foreigners do not exceed their quota of 15 per cent. of Royal Ordnance shares by way of holding companies.
§ Mr. Norman Lamont[pursuant to his reply, 28 April 1986, c. 332]: Any quota established would be embodied in the company's articles of association. At flotation, measures would be in force to enable strict vetting of share applications to be applied. Thereafter I am satisfied that the provisions of the Companies Act and the company's articles of association would apply to protect the quota.
§ Mrs. Dunwoodyasked the Secretary of State for Defence if he will give the name of the consultants preparing the sale of the royal ordnance factories; and what safeguards he has asked for relating to the sale of royal ordnance factories to non-British shareholders.
§ Mr. Norman Lamont[pursuant to his reply, 28 April 1986, c. 332]: The consultants engaged on the privatisation of Royal Ordnance plc are as follows:
- Lazard Brothers and Company Ltd.—Merchant bank advisers to royal ordnance.
- Cazenove and Company/Kleinwort Grieveson and Company—joint brokers to royal ordnance.
- Coward Chance—Solicitors to royal ordnance.
- Coopers and Lybrand—reporting accountants to the MOD and RO.
- Grandfield Rork Collins Financial—financial public relations consultants to the Ministry of Defence and royal ordnance.
- N. M. Rothschild and Sons Ltd.—Merchant bank advisers to Her Majesty's Government.
- Hoare Govett Ltd.—Brokers to the Ministry of Defence.
- Herbert Smith and Co.—Solicitors to the Ministry of Defence.
- Greenaway Harrison Ltd.—Printers.
The Government have given an undertaking that Royal Ordnance will not be allowed to fall under foreign control. It is envisaged that this will be achieved by amending the articles of association appropriately before flotation to limit the proportion of shares held by foreigners and by creating a special share held by the Government to ensure that the position is not changed. No final decisions have, however, yet been taken on the precise mechanics.
§ Mrs. Dunwoodyasked the Secretary of State for Defence if he will list the royal ordnance factories which (a) have and (b) have not been offered guaranteed contracts in 1986–87.
§ Mr. Norman Lamont[pursuant to his reply, 28 April 1986, c. 332]: The following royal ordnance factories have been offered contracts since 1 April 1986: Chorley, Blackburn, Patricroft, Enfield, Radway Green, Westcott, Bridgwater and Bishopton.