§ Dr. David ClarkTo ask the Secretary of State for Defence what recent discussions he has had with the management of GEC regarding the future of Ferranti International; and if he will make a statement.
§ Mr. AitkenThe managements of both GEC and Ferranti International kept my Department informed about their discussions on the future of Ferranti. GEC's decision to make an offer for Ferranti, and its subsequent decision that the offer should lapse, were matters for its commercial judgment.
§ Dr. David ClarkTo ask the Secretary of State for Defence what recent discussions he has had with his United States of America counterpart regarding the future of Ferranti International; and if he will make a statement.
§ Mr. AitkenMy right hon. and learned Friend has had no such discussions.
§ Dr. David ClarkTo ask the Secretary of State for Defence if he will provide details of all the contracts he currently has with Ferranti International; and if he will make a statement.
§ Mr. AitkenIt is not my Department's practice to provide details of all our contracts with a company. We have a large number of contracts with Ferranti International, covering a wide range of projects, on which, in the last financial year, we made payments of over £100 million.
Officials of my Department are discussing with the receivers of Ferranti International what can be done to minimise any disruption to the completion of our contracts.
§ Dr. David ClarkTo ask the Secretary of State for Defence what assessment he has made of the impact of the failure of GEC to take over Ferranti International on the defence industrial base; and if he will make a statement.
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§ Mr. AitkenGEC's decision to let its conditional offer for Ferranti International lapse will in itself have no impact on the defence industrial base. The receivers of Ferranti International have said that they wish to restore trading to near-normality as soon as possible. Any long-term effects on the defence industrial base will depend on the outcome of the receivership.