§ Mr. Latham
asked the Secretary of State for Foreign and Commonwealth Affairs whether he will make a statement on the funds so far paid to Gibraltar, under the agreement of July 1983, to meet the initial costs of commercialisation of the naval dockyard; and what changes have taken place in working practices since, in accordance with the agreement.
§ Mr. Raison
Out of the £28 million promised, a sum of £26.286 million has been spent meeting the cost of capital equipment, civil engineering work, relocation, refurbishment and start-up expenses, and local operating costs. Most of the balance is in the process of being spent, for example, bills in the pipeline. The agreement called for new commercial working practices. It is understood from the company that progress has been made towards a higher level of flexibility, bringing about some improvement in productivity, since it commenced its operations on 1 January 1985. Recent differences in approach between management and the union are the subject of current discussions and it is hoped these will very quickly be resolved.