Aircraft and Shipbuilding Industries Act 1977
Encyclopedia
The Aircraft and Shipbuilding Industries Act 1977 is an Act
of the Parliament of the United Kingdom
that nationalised large parts of the UK aerospace
and shipbuilding
industries and established two corporations, British Aerospace
and British Shipbuilders
(s.1).
Nationalisation of the two industries had been a manifesto
commitment of the Labour Party
in the United Kingdom general election, February 1974
. It met immediate opposition from the industries, including from Labour politician and Vickers
Chairman Lord Robens
The nationalisation was announced in July 1974 but the compensation terms were not announced until March 1975. The Bill
had its first reading on 30 April 1975 but ran out of parliamentary time in that session. Subsequent Bills had a stormy passage through parliament. Ship repairing was originally included in its scope but removed because of the findings of examiners that the Bill was hybrid
. The Bill was rejected by the House of Lords
on three separate occasions. It was possible that the provisions of the Parliament Acts 1911 and 1949
could have been employed to enact it, but the legislation was approved following concessions by the Government, including deletion of the 12 ship repairing companies.
Shipbuilding
Marine diesel
Note: Harland and Wolff
, Belfast
was state-owned but did not form part of British Shipbuilders.
s against a valuation of the share
s over a relevant period of 6 months up to the Labour Party's election on 28 February 1974. For companies listed on the London Stock Exchange
, this was the average
quoted price over the relevant period. For non-listed shares, the government would negotiate
with a shareholders' representative to establish an hypothetical market
valuation. If no agreement was reached, the shareholders had recourse to arbitration
(ss.36-41). However, section 39 controversially included a provision to make deductions from this base value if a company had dissipated its asset
s by declaring dividend
s in anticipation of nationalisation, or by other means.
s over valuation but not challenges to the fairness of the statutory formula. The Tribunal was governed by rules made respectively by the Lord Advocate
for Scotland and the Lord Chancellor
for the remainder of the UK. There was a right of appeal to the Court of Session
in Scotland and to the Court of Appeal
in the remainder of the UK (Sch.7), with a possible further appeal to the House of Lords
. There was 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
and will be rationalised as part of the reforms put in place by the Tribunals, Courts and Enforcement Act 2007
. The quango will be abolished under the UK Government's comprehensive spending review (2010 UK quango reforms
).
had been critical of the compensation proposals but, after being elected in the United Kingdom general election, 1979
did not change the arrangements. All shareholders had been paid out by the end of 1980. In 1980 unsuccessful applications to the European Court of Human Rights
over the compensation were made by Vosper, Vickers, Yarrow and shareholders including English Electric
, M&G Securities, Prudential
, and Sir William Lithgow
.
They complained, in the end unsuccessfully, that the compensation scheme breached several articles of the European Convention on Human Rights
, namely:
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----
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
of the Parliament of the United Kingdom
Parliament of the United Kingdom
The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body in the United Kingdom, British Crown dependencies and British overseas territories, located in London...
that nationalised large parts of the UK aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...
and shipbuilding
Shipbuilding
Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both...
industries and established two corporations, British Aerospace
British Aerospace
British Aerospace plc was a UK aircraft, munitions and defence-systems manufacturer. Its head office was in the Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire...
and British Shipbuilders
British Shipbuilders
British Shipbuilders Corporation was a public corporation that owned and managed the shipbuilding industry in England and Scotland from 1977 and through the 1980s...
(s.1).
Nationalisation of the two industries had been a manifesto
Manifesto
A manifesto is a public declaration of principles and intentions, often political in nature. Manifestos relating to religious belief are generally referred to as creeds. Manifestos may also be life stance-related.-Etymology:...
commitment of the Labour Party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
in the United Kingdom general election, February 1974
United Kingdom general election, February 1974
The United Kingdom's general election of February 1974 was held on the 28th of that month. It was the first of two United Kingdom general elections held that year, and the first election since the Second World War not to produce an overall majority in the House of Commons for the winning party,...
. It met immediate opposition from the industries, including from Labour politician and Vickers
Vickers
Vickers was a famous name in British engineering that existed through many companies from 1828 until 1999.-Early history:Vickers was formed in Sheffield as a steel foundry by the miller Edward Vickers and his father-in-law George Naylor in 1828. Naylor was a partner in the foundry Naylor &...
Chairman Lord Robens
Alfred Robens, Baron Robens of Woldingham
Alfred Robens, Baron Robens of Woldingham CBE PC was an English trade unionist, Labour politician and industrialist...
The nationalisation was announced in July 1974 but the compensation terms were not announced until March 1975. The Bill
Bill (proposed law)
A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....
had its first reading on 30 April 1975 but ran out of parliamentary time in that session. Subsequent Bills had a stormy passage through parliament. Ship repairing was originally included in its scope but removed because of the findings of examiners that the Bill was hybrid
Hybrid bill
In the United Kingdom, a hybrid bill is a public bill which affects the private interests of a particular person or organization. It is generally initiated by the Government on behalf of non-Parliamentary bodies such as local authorities and is treated like a private bill for the beginning of its...
. The Bill was rejected by the House of Lords
House of Lords
The House of Lords is the upper house of the Parliament of the United Kingdom. Like the House of Commons, it meets in the Palace of Westminster....
on three separate occasions. It was possible that the provisions of the Parliament Acts 1911 and 1949
Parliament Acts 1911 and 1949
The Parliament Acts 1911 and 1949 are two Acts of the Parliament of the United Kingdom, which form part of the constitution of the United Kingdom. Section 2 of the Parliament Act 1949 provides that that Act and the Parliament Act 1911 are to be construed as one.The Parliament Act 1911 The...
could have been employed to enact it, but the legislation was approved following concessions by the Government, including deletion of the 12 ship repairing companies.
List of assets subsumed by British Aerospace
The assets of the following companies vested in British Aerospace on 29 April 1977 (ss.19(1) and 56(1)/ Sch.1):- British Aircraft CorporationBritish Aircraft CorporationThe British Aircraft Corporation was a British aircraft manufacturer formed from the government-pressured merger of English Electric Aviation Ltd., Vickers-Armstrongs , the Bristol Aeroplane Company and Hunting Aircraft in 1960. Bristol, English Electric and Vickers became "parents" of BAC with...
- Hawker Siddeley Aviation
- Hawker Siddeley Dynamics
- Scottish AviationScottish AviationScottish Aviation Limited was a Scottish aircraft manufacturer, based at Prestwick in South Ayrshire.-History:Originally a flying school operator the company took on maintenance work in 1938....
List of assets subsumed by British Shipbuilders
The assets of the following companies vested in British Shipbuilders on 1 September 1977 (ss.19(1) and 56(1)/ Sch.2):Shipbuilding
- Ailsa Shipbuilding CompanyAilsa Shipbuilding Company-History:The company was founded in 1885 by the 3rd Marquess of Ailsa.In 1902 the Ailsa yard fitted out the polar exploration ship Scotia for the Scottish National Antarctic Expedition of 1902-04...
, TroonTroonTroon is a town in South Ayrshire. It is situated on the west coast of Scotland, about eight miles north of Ayr and three miles northwest of Glasgow Prestwick International Airport. Lying across the Firth of Clyde, the Isle of Arran can be seen. Troon is also a port with freight and ferry services...
(acquired in 1978, merged with Ferguson ShipbuildersFerguson ShipbuildersFerguson Shipbuilders Limited is a shipyard located in Port Glasgow on the River Clyde in Scotland. It is the last remaining shipbuilder on the lower Clyde, and is currently the only builder of merchant ships on the river - the company's mainstay has long been Roll-on/roll-off ferries.-History:The...
in 1981 to form Ferguson-Ailsa) - Appledore ShipbuildersAppledore Shipbuilders-History:The Appledore Yard was founded in 1855 on the estuary of the River Torridge. The Richmond Dry Dock was built in 1856 by William Yeo and named after Richmond Bay in Prince Edward Island, where the Yeo family's shipping fleet was based....
, Appledore - Austin & PickersgillA&P GroupA&P Group Ltd is the largest ship repair and conversion company in the UK, with three shipyards located in Hebburn, Middlesbrough and Falmouth. The Company undertakes a wide variety of maintenance and repair work on commercial and military ships with projects ranging from a two day alongside repair...
, Sunderland - Brooke MarineBrooke MarineBrooke Marine was a Lowestoft-based shipbuilding firm. The company constructed boats and small ships for civilian and commercial use, as well as minor warships for the Royal Navy, Royal Navy of Oman, Royal Australian Navy, Kenya Navy and United States Navy.The company was founded in 1874 as a...
, LowestoftLowestoftLowestoft is a town in the English county of Suffolk. The town is on the North Sea coast and is the most easterly point of the United Kingdom. It is north-east of London, north-east of Ipswich and south-east of Norwich... - Cammell Laird Shipbuilders, BirkenheadBirkenheadBirkenhead is a town within the Metropolitan Borough of Wirral in Merseyside, England. It is on the Wirral Peninsula, along the west bank of the River Mersey, opposite the city of Liverpool...
- Clelands Shipbuilding CompanyClelands Shipbuilding CompanyClelands Shipbuilding Company was a leading British shipbuilding company. The Company was based in Wallsend was nationalised by the British Government.-History:...
, WallsendWallsendWallsend is an area in North Tyneside, Tyne and Wear, England. Wallsend derives its name as the location of the end of Hadrian's Wall. It has a population of 42,842.-Romans:... - Ferguson ShipbuildersFerguson ShipbuildersFerguson Shipbuilders Limited is a shipyard located in Port Glasgow on the River Clyde in Scotland. It is the last remaining shipbuilder on the lower Clyde, and is currently the only builder of merchant ships on the river - the company's mainstay has long been Roll-on/roll-off ferries.-History:The...
, Port GlasgowPort GlasgowPort Glasgow is the second largest town in the Inverclyde council area of Scotland. The population according to the 1991 census for Port Glasgow was 19426 persons and in the 2001 census was 16617 persons...
(merged with Ailsa in 1981 to form Ferguson-Ailsa) - Goole Shipbuilding & Repairing Company, GooleGooleGoole is a town, civil parish and port located approximately inland on the confluence of the rivers Don and Ouse in the East Riding of Yorkshire, England...
- Govan ShipbuildersGovan ShipbuildersGovan Shipbuilders Ltd was a British shipbuilding company based on the River Clyde at Glasgow in Scotland. It operated the former Fairfield Shipyard and took its name from the Govan area in which it was located.-History:...
, GovanGovanGovan is a district and former burgh now part of southwest City of Glasgow, Scotland. It is situated west of Glasgow city centre, on the south bank of the River Clyde, opposite the mouth of the River Kelvin and the district of Partick.... - Hall, Russell & CompanyHall, Russell & CompanyHall, Russell & Company, Limited was a shipbuilder based in Aberdeen, Scotland, UK-History:Brothers James and William Hall, Thomas Russell, a Glasgow engineer, and James Cardno Couper founded the company in 1864 to build steam engines and boilers. In 1867 the company built its first ship, the Kwang...
, AberdeenAberdeenAberdeen is Scotland's third most populous city, one of Scotland's 32 local government council areas and the United Kingdom's 25th most populous city, with an official population estimate of .... - Robb Caledon Shipbuilders, (comprising Henry RobbHenry RobbHenry Robb, Limited, known colloquially as Robbs, was a British shipbuilding company based in Leith Docks on the east coast of Scotland. Robbs was notable for building small-to-medium sized vessels, particularly tugs and dredgers.-History:...
, LeithLeith-South Leith v. North Leith:Up until the late 16th century Leith , comprised two separate towns on either side of the river....
and Caledon Shipbuilding & Engineering CompanyCaledon Shipbuilding & Engineering CompanyThe Caledon Shipbuilding & Engineering Company, Limited was a British shipbuilding company based in Dundee on the east coast of Scotland.-History:...
, DundeeDundeeDundee is the fourth-largest city in Scotland and the 39th most populous settlement in the United Kingdom. It lies within the eastern central Lowlands on the north bank of the Firth of Tay, which feeds into the North Sea...
) - Scott LithgowScott Lithgow-History:The Company was formed in 1967 by the merger of Scotts Shipbuilding and Engineering Company and Lithgows. Scott Lithgow was based in Port Glasgow and Greenock on the lower Clyde in Scotland. Scott Lithgow was nationalised and subsumed into British Shipbuilders in 1977...
, GreenockGreenockGreenock is a town and administrative centre in the Inverclyde council area in United Kingdom, and a former burgh within the historic county of Renfrewshire, located in the west central Lowlands of Scotland...
(comprising Scotts Shipbuilding and Engineering CompanyScotts Shipbuilding and Engineering CompanyScotts Shipbuilding and Engineering Company Limited, often referred to simply as Scotts, was a Scottish shipbuilding company based in Greenock on the River Clyde.- History :...
& LithgowsLithgowsLithgows Limited, was a British shipbuilding company based in Kingston, Port Glasgow, on the River Clyde in Scotland.-Founding:The Company was established by Joseph Russell and his partners Anderson Rodger and William Lithgow who leased the Bay Yard in Port Glasgow from Cunliffe & Dunlop and...
) - Smiths Dock CompanySmiths Dock CompanySmiths Dock Company, Limited, often referred to simply as Smiths Dock, was a British shipbuilding company.-History:The company was originally established by Thomas Smith who bought William Rowe's shipyard at St. Peter's in Newcastle upon Tyne in 1810 and traded as William Smith & Co. The company...
, MiddlesbroughMiddlesbroughMiddlesbrough is a large town situated on the south bank of the River Tees in north east England, that sits within the ceremonial county of North Yorkshire... - Sunderland Shipbuilders, Sunderland (incorporating William Doxford & SonsWilliam Doxford & SonsWilliam Doxford & Sons Ltd, often referred to simply as Doxford, was a British shipbuilding company.-History:The Company was established by William Doxford in 1840. From 1870 it was based in Pallion, Sunderland, on the River Wear in Northeast England. The Company was managed by William Doxford's...
, PallionPallionPallion is a suburb, civil parish and electoral ward of the City of Sunderland, in Tyne and Wear, England. Most of the buildings in the area were built during the Victorian Era and consist of large terraced houses built for wealthy shipbuilders, but also smaller one storey cottages in other areas...
) - Swan Hunter Shipbuilders LimitedSwan HunterSwan Hunter, formerly known as "Swan Hunter & Wigham Richardson", was one of the best known shipbuilding companies in the world. Based in Wallsend, Tyne and Wear, the company was responsible for some of the greatest ships of the early 20th century — most famously, the RMS Mauretania which...
, WallsendWallsendWallsend is an area in North Tyneside, Tyne and Wear, England. Wallsend derives its name as the location of the end of Hadrian's Wall. It has a population of 42,842.-Romans:...
(later renamed Swan Hunter) - also incorporating John Readhead & SonsJohn Readhead & SonsJohn Readhead & Sons was a shipyard located in South Shields, Tyne and Wear in England, by the River Tyne.-History:The business was founded John Readhead in 1865 trading in South Shields under the name of Readhead & Softley. The Company's first ship was a small collier named Unus. In 1909 the...
, South ShieldsSouth ShieldsSouth Shields is a coastal town in Tyne and Wear, England, located at the mouth of the River Tyne to Tyne Dock, and about downstream from Newcastle upon Tyne...
and Wallsend Slipway and Engineering Company, WallsendWallsendWallsend is an area in North Tyneside, Tyne and Wear, England. Wallsend derives its name as the location of the end of Hadrian's Wall. It has a population of 42,842.-Romans:... - Vickers Limited Shipbuilding GroupVickers Shipbuilding and Engineering LtdIn 1994 VSEL was subject to two takeover proposals, one from GEC and another from British Aerospace . VSEL was willing to participate in a merger with a larger company to reduce its exposure to cycles in warship production, particularly following the "Options for Change" defence review after the...
, Barrow in Furness (renamed Vickers Shipbuilding and Engineering Limited - VSEL) - Vosper Thornycroft, Woolston and PortsmouthPortsmouthPortsmouth is the second largest city in the ceremonial county of Hampshire on the south coast of England. Portsmouth is notable for being the United Kingdom's only island city; it is located mainly on Portsea Island...
Marine diesel
- Yarrow ShipbuildersYarrow ShipbuildersYarrow Limited , often styled as simply Yarrows, was a major shipbuilding firm based in the Scotstoun district of Glasgow on the River Clyde...
(YSL), ScotstounScotstounScotstoun is a historic district of Glasgow, Scotland, west of Glasgow City Centre. It is bounded by Yoker and Knightswood to the west, Victoria Park, Broomhill and Whiteinch to the east, Jordanhill to the north and the River Clyde to the south... - Barclay Curle and CompanyBarclay Curle-History:The company was founded by Robert Barclay at Stobcross in Glasgow, Scotland during 1818. In 1862, the company built a large engineering works at Stobcross in Glasgow. In 1876, the company moved their yard down the river to Whiteinch. It was incorporated in 1884 as Barclay Curle...
, WhiteinchWhiteinchWhiteinch is a district in the Scottish city of Glasgow. It is situated north of the River Clyde between the Partick and Scotstoun areas of the city... - George Clark & NEMGeorge Clark & NEMGeorge Clark & NEM was a leading British marine engineering business. The Company was based in Sunderland and was a major employer in the area.-History:...
, Sunderland - Hawthorn Leslie and CompanyHawthorn Leslie and CompanyR. & W. Hawthorn Leslie and Company, Limited, usually referred to as Hawthorn Leslie, was a shipbuilding and locomotive manufacturer. The Company was founded on Tyneside in 1886 and ceased building ships in 1982.-History:...
, HebburnHebburnHebburn is a small town situated on the south bank of the River Tyne in North East England, sandwiched between the towns of Jarrow and Bill Quay... - John G. Kincaid & Company, GreenockGreenockGreenock is a town and administrative centre in the Inverclyde council area in United Kingdom, and a former burgh within the historic county of Renfrewshire, located in the west central Lowlands of Scotland...
Note: Harland and Wolff
Harland and Wolff
Harland and Wolff Heavy Industries is a Northern Irish heavy industrial company, specialising in shipbuilding and offshore construction, located in Belfast, Northern Ireland....
, Belfast
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...
was state-owned but did not form part of British Shipbuilders.
Compensation
Section 35 of the Act provided for compensation to the original owners. Compensation was to be by government bondGovernment bond
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country...
s against a valuation of the share
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
s over a relevant period of 6 months up to the Labour Party's election on 28 February 1974. For companies listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
, this was the average
Average
In mathematics, an average, or central tendency of a data set is a measure of the "middle" value of the data set. Average is one form of central tendency. Not all central tendencies should be considered definitions of average....
quoted price over the relevant period. For non-listed shares, the government would negotiate
Negotiation
Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy...
with a shareholders' representative to establish an hypothetical market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
valuation. If no agreement was reached, the shareholders had recourse to arbitration
Arbitration
Arbitration, a form of alternative dispute resolution , is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons , by whose decision they agree to be bound...
(ss.36-41). However, section 39 controversially included a provision to make deductions from this base value if a company had dissipated its asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
s by declaring dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
s in anticipation of nationalisation, or by other means.
Aircraft and Shipbuilding Industries Arbitration Tribunal
Section 42 of the Act established the Aircraft and Shipbuilding Industries Arbitration Tribunal to hear appealAppeal
An appeal is a petition for review of a case that has been decided by a court of law. The petition is made to a higher court for the purpose of overturning the lower court's decision....
s over valuation but not challenges to the fairness of the statutory formula. The Tribunal was governed by rules made respectively by the Lord Advocate
Lord Advocate
Her Majesty's Advocate , known as the Lord Advocate , is the chief legal officer of the Scottish Government and the Crown in Scotland for both civil and criminal matters that fall within the devolved powers of the Scottish Parliament...
for Scotland and the Lord Chancellor
Lord Chancellor
The Lord High Chancellor of Great Britain, or Lord Chancellor, is a senior and important functionary in the government of the United Kingdom. He is the second highest ranking of the Great Officers of State, ranking only after the Lord High Steward. The Lord Chancellor is appointed by the Sovereign...
for the remainder of the UK. There was a right of appeal to the Court of Session
Court of Session
The Court of Session is the supreme civil court of Scotland, and constitutes part of the College of Justice. It sits in Parliament House in Edinburgh and is both a court of first instance and a court of appeal....
in Scotland and to the Court of Appeal
Court of Appeal of England and Wales
The Court of Appeal of England and Wales is the second most senior court in the English legal system, with only the Supreme Court of the United Kingdom above it...
in the remainder of the UK (Sch.7), with a possible further appeal to the House of Lords
Judicial functions of the House of Lords
The House of Lords, in addition to having a legislative function, historically also had a judicial function. It functioned as a court of first instance for the trials of peers, for impeachment cases, and as a court of last resort within the United Kingdom. In the latter case the House's...
. There was also provision for judicial review
Judicial review in English Law
Judicial review is a procedure in English administrative law by which the courts in England and Wales supervise the exercise of public power on the application of an individual...
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
Administrative Justice and Tribunals Council
The Administrative Justice and Tribunals Council is a non-departmental public body in the United Kingdom, responsible for supervising and regulating administrative justice and tribunals...
and will be rationalised as part of the reforms put in place by the Tribunals, Courts and Enforcement Act 2007
Tribunals, Courts and Enforcement Act 2007
The Tribunals, Courts and Enforcement Act 2007 is an Act of the Parliament of the United Kingdom. It provides for several diverse matters relating to the law, some of them being significant changes to the structure of the courts and fundamental legal procedures...
. The quango will be abolished under the UK Government's comprehensive spending review (2010 UK quango reforms
2010 UK quango reforms
Following the 2010 United Kingdom General Election, the UK Government announced plans to curb public spending through the abolition of a large number of quasi-autonomous non-governmental organisations . On 23 May 2010, Chancellor of the Exchequer George Osborne unveiled a £500million plan to reduce...
).
European Court of Human Rights
The Conservative PartyConservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
had been critical of the compensation proposals but, after being elected in the United Kingdom general election, 1979
United Kingdom general election, 1979
The United Kingdom general election of 1979 was held on 3 May 1979 to elect 635 members to the British House of Commons. The Conservative Party, led by Margaret Thatcher ousted the incumbent Labour government of James Callaghan with a parliamentary majority of 43 seats...
did not change the arrangements. All shareholders had been paid out by the end of 1980. In 1980 unsuccessful applications to the European Court of Human Rights
European Court of Human Rights
The European Court of Human Rights in Strasbourg is a supra-national court established by the European Convention on Human Rights and hears complaints that a contracting state has violated the human rights enshrined in the Convention and its protocols. Complaints can be brought by individuals or...
over the compensation were made by Vosper, Vickers, Yarrow and shareholders including English Electric
English Electric
English Electric was a British industrial manufacturer. Founded in 1918, it initially specialised in industrial electric motors and transformers...
, M&G Securities, Prudential
Prudential plc
Prudential plc is a multinational financial services company headquartered in London, United Kingdom.Prudential's largest division is Prudential Corporation Asia, which has over 15 million customers across 13 Asian markets and is a top-three provider of life insurance in mainland China, Hong...
, and Sir William Lithgow
Sir William Lithgow, 2nd Baronet
Sir William James Lithgow, 2nd Baronet is a Scottish industrialist and vice-chairman of Lithgow Group. In 1952 he inherited the Scottish shipbuilding company, Lithgows, which was established by his grandfather, William Lithgow. At the time, it was the largest private shipbuilding concern in the...
.
They complained, in the end unsuccessfully, that the compensation scheme breached several articles of the European Convention on Human Rights
European Convention on Human Rights
The Convention for the Protection of Human Rights and Fundamental Freedoms is an international treaty to protect human rights and fundamental freedoms in Europe. Drafted in 1950 by the then newly formed Council of Europe, the convention entered into force on 3 September 1953...
, namely:
- Art.1 of Protocol 1, right to peaceful enjoyment of one's possessions;
- Art.6(1), right to a fair trialRight to a fair trialThe right to fair trial is an essential right in all countries respecting the rule of law. A trial in these countries that is deemed unfair will typically be restarted, or its verdict voided....
; - Art.13, right to an effective remedy;
- Art.14, prohibition of discriminationDiscriminationDiscrimination is the prejudicial treatment of an individual based on their membership in a certain group or category. It involves the actual behaviors towards groups such as excluding or restricting members of one group from opportunities that are available to another group. The term began to be...
; - Art.17, prohibition of abuse of rights;
- Art.18, limitations on permitted restrictions of rights.
Sources
- Whitaker's AlmanackWhitaker's AlmanackWhitaker's Almanack is a reference book, published annually in the United Kingdom. The book was originally published by J Whitaker & Sons from 1868 to 1997, then by The Stationery Office, from 2003 to 2010 by A & C Black and from 2011 by .-Content:...
1978, pp356-365
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- Lithgow and Others, in Lauterpacht, E. (1987) International Law Reports, London: Cambridge University Press, ISBN 0-949009-08-3, pp438-536
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