CONFIDENTIAL
Privatisation
The Government still aims time permitting to take powers during this Parliament to facilitate the introduction of private capital and all options are open. But the scope for privatisation in a predominantly lossmaking organisation
is limited.
Corporate Plan
We hope to announce our response before Easter. But the
Commission have to be consulted first. No response has been
given yet because it was sensible to wait for the results
of the Defence Review announced last June to allow BS time
to consider the implications for future naval orders. There
was then a change of Ministers and the need for further
discussions with the BS Board.
Polish Deal
This was a bad deal. BS lost £40m of construction costs in
addition to subsidies of £28m. Details of repayment of credit
are commercially confidential to the parties concerned.
P&O Cruise Liner
The order has gone to a Finnish yard. The existing order book at Swan Hunter the BS yard which could have coped with such a big vessel meant that BS could not meet the required
delivery date.
Japan
Japan's large share of the world shipbuilding market is still a matter for concern. Along with our EC partners we shall continue to make firm representations to the Japanese at OECD meetings telling them also that it is in Japan's interests to
exercise restraint.