Royal Ordnance Factories (Hansard, 11 July 1989)

§ 28. Mr. David Young
To ask the Secretary of State for Defence if he will make it his policy that, following the closure of royal ordnance factories, he will take steps to ensure that defence materials formerly produced by them continue to be produced from within the United Kingdom.

§ Mr. Sainsbury
In considering alternative sources of production, we take into account the needs of an efficient defence industry and the value of continuing production within the United Kingdom, but we purchase from overseas when the advantages of cost, performance and timescale outweigh the benefits of procuring a British alternative.
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§ 32. Mr. Steinberg
To ask the Secretary of State for Defence what is his most recent calculation of the difference between the sale price and current market value of the sale of royal ordnance factories, land and patent rights.

§ 40. Mr. Ray Powell
To ask the Secretary of State for Defence what is his most recent calculation of the difference between the sale price and current market value of the sale of royal ordnance factories, land and patent rights.

§ 63. Mr. Graham
To ask the Secretary of State for Defence what is his most recent calculation of the difference between the sale price and current market value of the sale of royal ordnance factories, land and patent rights.

§ 77. Mr. Maxton
To ask the Secretary of State for Defence what is his most recent calculation of the difference between the sale price and current market value of the sale of royal ordnance factories, land and patent rights.

§ Mr. Sainsbury
My Department has had no reason to attempt to calculate the current market value of the assets of Royal Ordnance plc since the company was sold in April 1987. Royal Ordnance plc was sold as an entity, with all its liabilities as well as its assets for £190 million to the highest bidder in keen and open competition. There was therefore no sale price for any of the assets of the company.
The National Audit Office, for its recent report on the sale of Royal Ordnance plc, commissioned surveyors to carry out an alternative use valuation of the three company sites (Enfield, Waltham Abbey and Patricroft) for which there have been highly speculative and exaggerated estimates of development value. The assessment of the current market value of the three sites prepared for the NAO was between £26 million and £38£5 million.