Public Bodies Bill [HL]

Lord Rosser Excerpts

Wednesday 1st December 2010 Lords Chamber

Moved by

[Lord Rosser]

22: Schedule 1, page 16, line 13, leave out “Aircraft and Shipbuilding Industries Arbitration Tribunal.”

[Lord Rosser]

My Lords, the Aircraft and Shipbuilding Industries Arbitration Tribunal organises compensation in connection with the nationalisation of the aerospace and shipbuilding industries. It hears appeals on valuations with a right of appeal ultimately to the Supreme Court. There is also provision for judicial review of the original compensation offer. The tribunal continues in existence but was described by the Council on Tribunals in 2006 as “rarely convened/moribund”. On 1 November 2007, the tribunal came under the supervision of the Administrative Justice and Tribunals Council, whose future also now appears somewhat less than secure. When he responds, will the Minister indicate the annual cost of the Aircraft and Shipbuilding Industries Arbitration Tribunal, how many members there are of the tribunal and how many times, if any, it has met in each of the past three years? Will the Minister also indicate the list of duties and responsibilities of the arbitration tribunal and state which duties and responsibilities the Government consider no longer need to be undertaken at all and why, and which duties and responsibilities, if any, will continue to be undertaken, and to whom or to which body they will be transferred? Presumably, the Government must have come to some conclusions on these issues. Having taken into account which duties and responsibilities will be transferred elsewhere, and the cost of continuing to carry out any remaining duties and responsibilities, could the Minister say what the net saving will be from abolishing the Aircraft and Shipbuilding Industries Arbitration Tribunal? I beg to move.

--- Later in debate ---

[Lord Taylor of Holbeach]

My Lords, I am pleased to move on to this series of amendments, and I will first turn to the Aircraft and Shipbuilding Industries Arbitration Tribunal. This was set up under the Aircraft and Shipbuilding Industries Act 1977 and related to the nationalised industries in aircraft manufacture and shipbuilding. These nationalised industries no longer exist and the tribunal is redundant. Similarly, the purpose of abolishing British Shipbuilders as a corporation is to simplify the administration of the funding and handling of British Shipbuilders’ residual liabilities. These liabilities will be transferred directly to the Department for Business, Innovation and Skills, which will provide a long-term solution to managing these liabilities.

The Government are committed to making compensation payments to former employees of British Shipbuilders, and I can give an indicative figure of the level of those compensation payments. They come to about £7 million a year. I hope that helps. The tribunal itself does not cost anything, as there are no standing costs and it does not have any employees. The compensation payments for former employees cover such injuries as mesothelioma, which were the result of their employment with British Shipbuilders. The payments are in line with the obligations that British Shipbuilding had to its employees.

British Shipbuilders Corporation was set up under the Aircraft and Shipbuilding Industries Act 1977. The corporation has no active trading operations and exists solely to meet its residual liabilities—litigation, insurance claims and other contractual matters— relating to its former employees. British Shipbuilders is effectively a shell company. In light of my assurances, I hope the noble Lord will feel able to withdraw his amendment.

[Lord Rosser]

I am not entirely sure whether the Minister was also replying to Amendment 24 as well as Amendment 22. Amendment 22 is about the Aircraft and Shipbuilding Industries Arbitration Tribunal, which is the one that hears appeals over valuation in relation to the nationalisation of the aerospace and shipbuilding industries. As far as I understood it, we were dealing with Amendment 22 separately. It seemed to me—though I am obviously prepared to stand corrected—as though some of the comments that the Minister made related to Amendment 24, which is about British Shipbuilders and any subsidiary of that company. I did raise a number of points—

[Lord Taylor of Holbeach]

I did speak to Amendment 24 because my speaking notes represented a grouping which is not current, and I apologise to the noble Lord. Perhaps he will confine himself to my response in respect of the tribunal, because that is what he was speaking to. I apologise.

[Lord Rosser]

I was not entirely clear about what the Minister said. He did say that it was moribund, so do I take it that the answer to my question as to how many times it met in each of the past three years is that it has not met at all? Is it the case that, despite the comments made by the noble Viscount, Lord Eccles, no costs are being incurred by this body, because it is moribund and it has not met?

[Lord Taylor of Holbeach]

I confirm that is the case. It does not cost anything, there is no standing cost and it does not have any employees.

[Lord Rosser]

I thank the Minister for that clear response and I beg leave to withdraw the amendment.

Amendment 22 withdrawn.