HC Deb 16 March 1987 vol 112 cc377-8W
Mr. Robert Atkins

asked the Secretary of State for Defence if any reasons were given to him by Trafalgar House plc for withdrawing its interest in purchasing Royal Ordnance plc; and if he will make a statement.

Mr. Archie Hamilton

The group chief executive of Trafalgar House wrote to my right hon. Friend indicating that, after detailed consideration of a comprehensive report, the board of directors had concluded that it should not make an offer for Royal Ordnance. He did not elaborate on its reasons.

Mr. Robert Atkins

asked the Secretary of State for Defence if he will require any potential purchaser of Royal Ordnance plc to give an assurance that the company will not be broken up.

Mr. Archie Hamilton

The future shape of the company must be a matter for sensible commercial judgment. But a prospective purchaser's likely intentions will certainly be one of the factors we shall be taking into account in reaching a final decision.

Mr. Robert Atkins

asked the Secretary of State for Defence what representations he has received from, and what consultations he has had with, trade unions in connection with the planned sale of Royal Ordnance plc.

Mr. Archie Hamilton

During the process of moving Royal Ordnance plc towards privatisation, Defence Ministers have had a number of exchanges of correspondence and meetings with the trades unions. A further meeting has been arranged between my right hon. Friend the Secretary of State and the trades unions today.

Mr. Robert Atkins

asked the Secretary of State for Defence what procedures he has adopted to advise and consult the total work force of Royal Ordnance plc in connection with the planned sale of the company; and if he will make a statement as to his future policy intentions.

Mr. Archie Hamilton

With the Government's encouragement, the management of Royal Ordnance has gone to considerable lengths to keep the work force informed of developments on privatisation and will continue to do so. My right hon. Friend has also corresponded and held meetings with trade union representatives, as has my noble Friend the Minister of State for Defence Procurement.

Mr. Robert Atkins

asked the Secretary of State for Defence if he will make a statement on the current position of Royal Ordnance plc.

Mr. Archie Hamilton

[pursuant to his reply, 24 February 1987, c. 132]: Firm proposals have been made by BAe and GKN for the acquisition of all the share capital of Royal Ordnance plc. These proposals, the terms of which must for the time being remain confidential, are currently being considered by the Government and their advisers. Further discussions will be held with the two companies.

Ferranti has decided not to make an offer for the share capital of Royal Ordnance.

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