HC Deb 20 July 1990 vol 176 cc750-1W
Mr. Hayward

To ask the Secretary of State for Trade and Industry whether he has yet received the formal Community decision on the Rover Group.

Mr. Lilley

I received the formal Community decision on 19 July, and have placed copies in the Library.

Mr. Hoyle

To ask the Secretary of State for Trade and Industry what were the reasons there was an exceptional tax allowance pool prior to the sale of Rover in August 1988.

Mr. Douglas Hogg

[holding answer 17 July 1990]: I presume the hon. Member has in mind the reference in the National Audit Office report (appendix 2, paragraph 2.1.2) to the exceptional size of the capital allowance pools As that paragraph went on to explain, this was resulting from previous disclaimers of allowances".

Mr. Hoyle

To ask the Secretary of State for Trade and Industry what is the latest information available to the Government about the current value to British Aerospace of the lifting of the ring fences on Rover's capital losses and allowances in July 1988.

Mr. Douglas Hogg

[holding answer 17 July 1990]: This must be a matter for British Aerospace, but the report by Touche Ross for the National Audit Office in September 1989 put the commercial net present value of the trading losses and capital allowance pools at £33 million to £40 million and assigned a "negligible or nil value" to the capital losses.