HC Deb 14 June 1989 vol 154 c439W
Mr. Thorne

To ask the Chancellor of the Duchy of Lancaster how, in the event that GEC/Siemens acquire the Plessey company, he proposes to ensure continued competitive solutions in the research and development field.

Mr. Maude

In its report on the proposed acquitition of Plessey by GEC Siemens, the Monopolies and Mergers Commission concluded that the effect of the proposed acquisition on research and development would not operate against the public interest. In accordance with the Commission's recommendations, however, my right hon. and noble Friend the Secretary of State for Trade and Industry has asked my right hon. Friend the Secretary of State for Defence to seek undertakings, amongst others, that would satisfy United Kingdom national security requirements as to the ownership and management of defence, research and development and semiconductor activities. Negotiations on undertakings continue.

Mr. Barry Field

To ask the Chancellor of the Duchy of Lancaster how, in the event that GEC/Siemens acquire the Plessey company, he plans to ensure that Plessey radar and Plessey defence systems can compete equally with GEC companies.

Mr. Maude

Following publication of the Monopolies and Mergers Commission report on the proposed acquisition of Plessey by GEC Siemens, my right hon. and noble Friend the Secretary of State for Trade and Industry has made it clear that the proposed acquisition should not proceed until satisfactory undertakings have been obtained from GEC and Siemens, including undertakings from GEC that GEC should not acquire any interest in or influence or control over the management of the Plessey radar and defence systems businesses. Negotiations on undertakings continue.

Mr. Barry Field

To ask the Chancellor of the Duchy of Lancaster (1) what measures are being taken to safeguard the position of Britain's base of enabling technology in semiconductors in the event that GEC/Siemens succeed in taking over Plessey;

(2) what measures are being taken to safeguard the position of the United Kingdom as the European leader in application specific integrated circuits in the event that GEC/Siemens succeed in taking over Plessey.

Mr. Maude

In its report on the proposed acquisition of Plessey by GEC Siemens, the Monopolies and Mergers Commission concluded that the effect of the proposed acquisition on electronic components would not operate against the public interest. In accordance with the Commission's recommendations, however, my right hon. and noble Friend the Secretary of State for Trade and Industry has asked my right hon. Friend the Secretary of State for Defence to seek undertakings, amongst others, that would satisfy United Kingdom national security requirements as to the ownership and management of defence, research and development and semiconductor activities. Negotiations on undertakings continue.