Heseltine renews criticism

Press, 14 January 1986, Page 6

Heseltine renews criticism

NZPA-Reuter London

Britain’s former Secretary for Defence, Mr Michael Heseltine, who resigned last week over a row on the rescue of Britain’s only helicopter firm, yesterday intensified his attacks on the handling of the affair by the Prime Minister Mrs Thatcher.

Mr Heseltine, whose abrupt resignation last week is already seen as having damaged Mrs Thatcher’s public standing, renewed charges that she had acted without majority Cabinet backing to thwart the European bid he favours. Mrs Thatcher’s handling of the rescue of the ailing Westland firm “was an affront to our constitutional practices,” he said on com-

mercial British television.

He said that the Prime Minister had gone back on a promise to hold a Cabinet meeting in December to discuss further a bid by a European consortium, although his Cabinet colleagues had supported continued consideration of the offer.

Mrs Thatcher has insisted that her Government has remained neutral in the affair, saying that Westland, whose board favours a rescue package led by the United States helicopter giant, Sikorsky, and Fiat, of Italy, must be allowed to decide its own future.

The row, focusing fresh attention on what many commentators see as Mrs Thatcher’s autocratic style

of leadership, appeared set to drag on as Westland admitted that a crucial shareholders’ meeting today could end in deadlock or adjournment without a vote.

The United States led package, tipped to win before Mr Heseltine launched his campaign, appeared in jeopardy as supporters of the European bid raised their stakes in the firm. Financial sources said that a former helicoptermaker, Alan Bristow, had increased his share holding to 12 per cent, and the British defence equipment firm, United Scientific Holdings, now held 5 per cent. With several other small investors in the European camp, it was unlikely that the Westland board would secure the 75 per cent sup-

port it needed to clinch the Sikorsky deal, they said.

The Westland chairman, Sir John Cuckney, said: “I may have to adjourn the meeting but in order to avoid a stalemate a totally new deal may have to emerge.”

Mrs Thatcher is also expected to come under fire in Parliament this week over the affair. The Opposition Labour Party leader, Mr Neil Kinnock, said that he would force a debate tomorrow unless Mrs Thatcher made a full statement to the House of Commons.