asked the Secretary of State for Industry what machinery exists for the resolution of conflicts between the normal commercial objectives which have been set for Short Brothers and Harland and the regard which he requires Government-appointed directors to have for general Government policy; and if he will describe any machinery which exists to inform those directors of that policy.

Short Brothers and Harland Limited functions as a commercial organisation with normal commercial objectives. Its Government-appointed directors, in undertaking their responsibilities, are required by instructions given to them at the time of their appointment to comply with Government policy and to seek our prior approval for any proposals which might cause difficulties with public policy. Consultation on such matters is normally between Departmental officials and the company chairman.