§ Mr. TrotterTo ask the Chancellor of the Duchy of Lancaster what arrangements he envisages for the disposal of the assets at NESL.
§ Mr. NewtonI made it clear earlier this year, following the announcement that British Shipbuilders was to close NESL, that the remaining work on ferries originally ordered by Danish interests would take some months to complete, and that no action would be taken to break up the assets in the yard before the end of June.
In the intervening period, there have been several expressions of interest in some or all of the yards for a number of purposes including shiprepair, shipbuilding and general engineering.
I have therefore asked British Shipbuilders and its financial advisers carefully to evaluate all such proposals with a view to advising me by the end of this month whether one or more of them provides a basis for detailed negotiation for the disposal of some or all of the assets. As with the evaluation of bids for NESL prior to the announcement of closure particular weight will be given to the security of resulting employment. In judging viability it will be necessary to allow for the fact that subsidy from the intervention fund would not be available.
In making its judgment on the advice offered by British Shipbuilders on any possible disposal, the Government will need also to take appropriate account of its acceptability under the EC sixth directive on shipbuilding of the balance of advantage by comparison with the alternative of acquisition by the Tyne and Wear development corporation for clearance and development; of the extent to which any form of Government financial assistance was envisaged.
Should such a disposal take place, the Government would also have to decide whether measures to assist the creation of employment to replace that in the yards continued to be necessary. Pending a decision, elements of the proposed remedial package not yet implemented, including designation of an enterprise zone, will be held in abeyance.