§ Mr. BellinghamTo ask the Secretary of State for Defence if he will make an up-to-date statement on the future of Royal Ordnance plc.
§ Mr. SainsburyThe Ministry of Defence sold Royal Ordnance plc to British Aerospace in April 1987, and is therefore no longer responsible for the affairs of the company. Royal Ordnance is a registered defence contractor, and, amongst other things, is contracted to supply, over the next five years, 80 per cent. of the Ministry of Defence's requirements for certain explosives, propellants and related end-products. The company will continue to be invited to bid in the future for MOD business which it has the capabilities to undertake.
§ Mr. GrahamTo ask the Secretary of State for Defence at what level within his Department discussions were held with British Aerospace concerning the possible sale of Royal Ordnance factories(a) before and (b) after privatisation; and if he will make a statement.
§ Mr. Sainsbury[holding answer 4 November 1988]: During discussions at various levels between the bidders and my Department, it was made clear that decisions about rationalising and restructuring the company would be a matter for the commercial judgment of the successful bidder, although RO's existing plans were included in the information circulated to interested buyers. There were no discussions with bidders about the possible closure or sale of particular sites.