HC Deb 16 April 1996 vol 275 cc460-1W
Ms Rachel Squire

To ask the Secretary of State for Defence what guarantees he will provide for the current Rosyth dockyard pension and redundancy arrangements following its sale; and what plans he has in respect of the pension fund surpluses. [25373]

Mr. Arbuthnot

In respect of the overall pension and redundancy arrangements at Rosyth Royal Dockyard plc, I refer the hon. Member to the answer given to her by my predecessor, my right hon. Friend the Member for Kettering (Mr. Freeman), on 3 July 1995,Official Report, columns 84–90. The treatment of any surplus that the next valuation of the Rosyth Royal Dockyard pension scheme may disclose will be fully consistent with the trust deed and rules of the pension scheme and will not affect the pension benefit entitlements of scheme members and beneficiaries.

Ms Squire

To ask the Secretary of State for Defence what guarantees he will provide for the work load of Rosyth Royal Dockyard plc following its sale. [25372]

Mr. Arbuthnot

The Government's policy on the allocation of work to Rosyth dockyard continues to be governed by the principles announced by my right hon. and learned Friend the Foreign Secretary as Defence Secretary, on 24 June 1993,Official Report, columns 447–50, which I confirmed in my answer on 2 April 1996, Official Report, column 98. The precise contractual arrangements relating to the work in question are the subject of negotiation between my Department and the tenderer for Rosyth Royal Dockyard plc, Babcock International Group plc. It would be inappropriate to give details of these discussions, which are commercially confidential.

Ms Squire

To ask the Secretary of State for Defence when he plans to announce the outcome of the proposed sale of Rosyth Royal Dockyard plc; and what factors underlie the delay in that announcement. [25362]

Mr. Arbuthnot

As I made clear in my answer to my hon. Friend the Member for West Dorset (Sir J. Spicer) on 2 April,Official Report, column 98, negotiations continue with Babcock International Group plc in respect of the proposed sale of Rosyth Royal Dockyard plc and there has been no delay in any announcement. It would not be appropriate to comment on the details of those negotiations while they are under way. Privatisation of Rosyth Royal Dockyard plc remains the Government's preferred option, subject to the right terms being secured and to the completion of appropriate consultation with employees and others.

Ms Squire

To ask the Secretary of State for Defence what arrangements for the provision of nuclear refuelling and refitting facilities will be included in the terms of the sale of Rosyth dockyard. [25361]

Mr. Arbuthnot

Under the terms of the proposed sale of Rosyth Royal Dockyard plc, the purchaser will be required to carry out all allocated refit work, surface and nuclear, that is placed with the dockyard by my Department. Appropriate terms for this work are being negotiated as part of the continuing negotiations with Babcock International Group plc to which I referred in my answer of 2 April,Official Report, column 98. There is a continuing programme of appropriate works at Rosyth to enable the dockyard to fulfil its refit programme.