§ Baroness Miller of Hendon asked Her Majesty's GovernmentWhat representations they are making to the European Commission concerning the legality of the French Government's plan to subsidise Alstom by acquiring shares in the company. [HL4302]
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)My right honourable friend the Secretary of State is considering the matter. In major restructuring cases it is normal for the Commission to launch an investigation under Article 88(2) of the EC Treaty providing third parties, including competitors and other member states, with an opportunity to make representations.
§ Baroness Miller of Hendonasked Her Majesty's Government:
What is their view of the proposals of Alstom to halve its United Kingdom staff, which is estimated would result in 5,000 redundancies and would reduce the company's operation in the United Kingdom from an export centre to a servicing base. [HL4303]
§ Lord Sainsbury of TurvilleAlstom's proposals are disappointing, but the decision is a commercial matter for the company and has been brought about by a major restructuring package affecting Alstom's worldwide operations as the company seeks to address continuing losses and a huge debt burden. However, it is important to note that many of the jobs affected are 17WA being transferred, rather than lost; for example, the sale of the transmission and distribution business, with 3,500 jobs out of the total of 5,000, which is expected to be finalised shortly.
It should be noted that Alstom's restructuring plan would also significantly affect the company's sites in other European countries, mainly in the power sector. Any UK job losses will of course be a blow to the individuals affected and their families. Regional bodies and local agencies are in contact with the company and will do everything necessary to help the individuals affected.
§ Baroness Miller of Hendonasked Her Majesty's Government:
What representations they are making to the European Commission concerning any reduction in the workforce that may result from Alstom's proposal to reduce its United Kingdom staff by 5,000 and concerning any relationship between this reduction and the French Government's subsidy to the company. [HL4427]
§ Lord Sainsbury of TurvilleMy right honourable friend the Secretary of State is considering the matter. In major restructuring cases it is normal for the Commission to launch an investigation under Article 88(2) of the EC Treaty providing third parties, including competitors and other member states, with an opportunity to make representations.