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Aircraft And Shipbuilding (Nationalisation)

Volume 932: debated on Thursday 19 May 1977

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asked the Secretary of State for Industry (1) what proportion of the total compensation payments for shareholders in shipbuilding companies he expects to be paid out by Her Majesty's Government by (a) vesting day, (b) one month after vesting day, (c) three months after vesting day and (d) later than three months;

(2) what further particular practical problems he now envisages will occur in negotiating the terms of compensation for nationalisation, to be paid out to shareholders and companies under the Aircraft and Shipbuilding Act 1977;

(3) when he expects to fix the compensation payment dates for the shipbuilding companies to be nationalised under the Aircraft and Shipbuilding Act 1977;

(4) if he will give a progress report on the negotiations now taking place with the companies to be taken into public ownership under the Aircraft and Shipbuilding Act 1977, and the firm date when he expects compensation to be paid; and in what form the payment will be effected.

Whinney Murray & Company, as the Government's advisors on the compensation payable under the Aircraft and Shipbuilding Industries Act 1977, are at present collecting from the companies concerned information needed for the valuation. Meanwhile, my Department has arranged an introductory meeting with the stockholders' representatives collectively.The timing of compensation payments will depend on the progress of the negotiations, which will have regard to the circumstances of each case. Compensation will be satisfied by the issue of Government stock.