Royal Ordnance Factories (Hansard, 23 January 1987)

§ Mr. Pike
asked the Secretary of State for Defence what consultation he proposes to hold in connection with obligations under the Trade Unions of Public Employees 81 agreement with the relevant trade unions prior to finalising any sale of the Royal Ordnance factories.

§ Mr. Archie Hamilton
The transfer of ownership by sale of the Government's 100 per cent. shareholding in Royal Ordnance plc would not involve any change in the legal identity of the owner of the business and employer of the work force and so would not affect the terms and conditions of service of employees. In these circumstances, the Transfer of Undertakings (Protection of Employment) 1981 regulations do not apply. However, my right hon. Friend recognises the importance of keeping the work force informed of developments and is ready to meet the relevant trade unions and hear their views before finalising any sale.

§ Mr. D. E. Thomas
asked the Secretary of State for Defence what consultations have taken place between his Department and the work force of the Royal Ordnance factories concerning plans for their privatisation.

§ Mr. Archie Hamilton
The change of status and privatisation of the Royal Ordnance factories were discussed extensively with the work force at the time of the passage of the Ordnance Factories and Military Services Act 1984. Since then, there has been correspondence and a number of meetings with representatives of the work force. Royal Ordnance plc has also taken care to keep the work force informed on progress towards privatisation. On the current position I refer the hon. Member to the answer that I gave today to the hon. Member for Burnley (Mr. Pike).

§ Mr. D. E. Thomas
asked the Secretary of State for Defence if he will make a statement of the progress of the Government's plans for the privatisation of the Royal Ordnance factories.

§ Mr. Archie Hamilton
In accordance with plans announced to the House of Commons by my right hon. Friend the Secretary of State for Defence on 24 July 1986, the Ministry of Defence is negotiating with four companies to sell the Government's 100 per cent. shareholding in Royal Ordnance plc. The four companies are currently conducting detailed reviews of Royal Ordnance, including visits to various factories. Final selection of the company with which a sale contract will be signed will not be for some time yet.