BAE Systems and EADS

Lord Tebbit Excerpts

Wednesday 10th October 2012 Lords Chamber

[Lord Marland]

The Government have been totally clear all along. It is up to the two companies—and countries, for that matter—to decide whether this is a suitable engagement. We also have to remember that EADS is a big employer in this country. It is responsible for the Eurocopter, which is very important to our defence needs. It employs 17,000 people and is therefore a significant independent company.

[Lord Tebbit]

My Lords, my noble friend said that this was entirely a matter for the company. Does that indicate that the Government would not ever in future use the golden share, which, when British Aerospace was privatised, it was decided that the Government should have because there are national interests that rate above the narrow interests of the company?

[Lord Marland]

Indeed, the national interests are absolutely fundamental and, of course, my noble friend was in Cabinet when those decisions were made. They were made to protect the national interest. However, the Government have not had to make a decision on that issue. The two companies have decided among themselves that they are not going to merge, and we are therefore in the fortunate position of allowing them to make that decision without us intervening.