§ Mr. Frank CookTo ask the President of the Board of Trade under what statutory basis the Swan Hunter shipbuilding yard was privatised; and if he will make a statement on the degree of indemnity given to(a) the new owners, (b) the shareholders and (c) the new company officials against claims for (i) faulty design and (ii) poor construction conducted on vessels built during the period of public ownership. [15567]
§ Mr. Greg KnightThe Swan Hunter shipbuilding yard was privatised under the terms of the Aircraft and Shipbuilding Industries Act 1977, as amended by the British Shipbuilders Act 1983, which regulates the activities of British Shipbuilders. An indemnity was given246W by British Shipbuilders to the purchasers of Swan Hunter Shipbuilders Ltd. on 20 January 1986. This indemnity, in brief, relates to demands, claims, liabilities, costs and expenses relating to vessels constructed by Swan Hunter Shipbuilders Ltd. prior to completion of privatisation, and other work carried out prior to completion, excluding work in progress. The indemnity does not cover the new company officials at Swan Hunter.