§ Mr. JackTo ask the Secretary of State for Trade and Industry whether he has yet replied to the Commission's decision of 17 July on the terms of the sale of Rover Group to British Aerospace.
§ Mr. LilleyA reply was sent to the Commission on 14 September setting out the measures taken by the Government to comply with the Commission's decision. The Commission had earlier agreed to extend the deadline for reply by one month to 17 September 1990. The Government informed the Commission that they had issued demands for payment by 17 August 1990 of £42.9 million by BAe and £1.5 million by Rover Group and that, 771W as no payment had been made, they had served writs on both companies to enforce repayment of the principal sums and payment of interest from 18 August 1990. The formal demands for payment were dated 16 August 1990 and the writs were issued and served on 10 September 1990.
The Government then went on to reply to the other points raised by the Commission by giving the specific assurances requested. In particular, the Government assured the Commission that no tax concessions had been given and:
- (i) that the tax treatment of BAe and the Rover Group was strictly in accordance with United Kingdom tax law;
- (ii) that the statement made by the then Chancellor of the Duchy of Lancaster on 4 May 1988 about the operation of the on-sale penalty was now superseded and that the penalty would not be set aside in any circumstances except by a subsequent decision of the Commission;
- (iii) that there was no question of BAe having any preferential access to Government assistance and that it would be treated as would any other applicant.