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Aircraft and Shipbuilding Industries Act 1977 (repealed)

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Version Superseded: 22/07/2004

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4 Corporations to give effect to directions of Secretary of State.U.K.

(1)Each Corporation shall give effect to any direction given to it under subsection (2) below or under any of the following provisions of this Act and shall secure, so far as appropriate, that each of its wholly owned subsidiaries also gives effect to any such direction.

(2)The Secretary of State may give directions of a general character as to the exercise and performance by either Corporation of its functions (including the exercise of rights conferred by the holding of interests in bodies corporate, whether or not incorporated in the United Kingdom) in relation to matters which appear to the Secretary of State to affect the national interest.

(3)Before giving any direction to either Corporation under subsection (2) above, the Secretary of State—

(a)shall consider all factors relating to that Corporation that appear to him to be relevant to the proposed direction, and

(b)shall consult the Corporation.

(4)Before giving any such direction to British Shipbuilders, the Secretary of State shall have full regard to the need—

(a)to co-ordinate the operations of British Shipbuilders with those of the British shipping industry;

(b)to take account of any shipbuilding policy for the time being adopted by any international organisation of which the United Kingdom is a member;

(c)to ensure that British Shipbuilders is able to compete in world markets on equal terms with its competitors in other countries; and

(d)to take account of any special considerations relating to parts of the United Kingdom and in particular, but without prejudice to the generality of those considerations, relating to employment.

(5)When the Secretary of State gives a direction under subsection (2) above, he shall lay a copy of it before each House of Parliament within 28 days of giving it, unless he has notified the Corporation to which it is given that he is of opinion that it is against the national interest to lay it or that he accepts the Corporation’s contention that it is against the Corporation’s commercial interests to lay it.

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