HC Deb 12 April 1988 vol 131 cc27-8W
Mr. Salmond

To ask the Chancellor of the Duchy of Lancaster what arrangements were made for the payment of the purchase price of the Leyland Bus Division from Austin Rover; and if he will make a statement.

Mr. Atkins

This is a matter for the Rover Group plc, which was the vendor of the Leyland Bus business.

Mr. Salmond

To ask the Chancellor of the Duchy of Lancaster if Austin Rover has received the full amount of the purchase price of the sale of the Leyland Bus Division in January 1987; and if he will make a statement.

Mr. Atkins

While this is strictly a matter for the Rover Group plc, I understand from the company that the due sum was paid.

Mr. Salmond

To ask the Chancellor of the Duchy of Lancaster on what dates payments of the purchase price of Leyland Bus Division were made to Austin Rover.

Mr. Atkins

The dates of payments to the Rover Group plc are a matter for the company.

Mr. Salmond

To ask the Chancellor of the Duchy of Lancaster if his Department was involved in negotiating the recent sale of the Leyland Bus Division to Volvo; and if he will make a statement.

Mr. Atkins

My Department was not involved in negotiating the sale of Leyland Bus Ltd. to Volvo.

Mr. Salmond

To ask the Chancellor of the Duchy of Lancaster if his Department has any plans to recover its investment in Leyland Buses; and if he will make a statement.

Mr. Atkins

No.

Mr. Salmond

To ask the Chancellor of the Duchy of Lancaster what has been the total level of state aid to Leyland Buses in each of the past five years; and if he will make a statement.

Mr. Atkins

In none of the past five years has the European Commission approved or rejected any specific proposals to state-aid the continuing Leyland Bus operations. Following the sale of Leyland Bus by the Rover Group plc the Government subscribed for £680 million of new capital in the Rover Group plc. This was to fund the write-off of the accumulated debts of Leyland Bus and Leyland Trucks left in the Rover Group plc, together with the restructuring costs arising from their sale.