§ Mrs. Dunwoodyasked the Secretary of State for Defence if he will list the companies seeking to buy the royal ordnance factories; and what guarantees he has obtained on the pension rights of the royal ordnance factories' work force.
§ Mr. Archie HamiltonThe companies are in alphabetical order): British Aerospace, Ferranti, GKN and Trafalgar House. The sale of the Government's 100 per cent. shareholding in royal ordnance plc will not affect the operation of the royal ordnance (Crown Service) Pesion Scheme, which the Government are satisfied is comparable to the Principal Civil Service Pension Scheme and provides a secure basis for the payment of fully indexed linked pensions.
§ Mrs. Dunwoodyasked the Secretary of State for Defence what new arrangements Her Majesty's Government are making to protect the long-term interests of the work force of the royal ordnance factories in relation to pensions, sickness benefits, and involuntary redundancies.
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§ Mr. Archie HamiltonThe terms and conditions of service of former royal ordnance factories employees were protected by arrangements made at the time of incorporation which ensured that taken as a whole they transferred to Royal Ordnance plc without detriment. The sale of the Government's 100 per cent. shareholding in the company will not change the legal identity of the employer of the work force and no new arrangements are therefore needed.
§ Mrs. Dunwoodyasked the Secretary of State for Defence what formula has been used by his Department to calculate the value of the royal ordnance factory at Radway Green.
§ Mr. Archie HamiltonIn accordance with plans announced by my right hon. Friend the Secretary of State for Defence on 24 July 1986, the Ministry of Defence is negotiating to sell royal ordnance plc as a whole. It follows that discrete valuations of individual parts of the business are not envisaged.