Treasury Committee 111997

[Jamie]

UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND
Security Classification: OFFICIAL

Recent economic affairs are elevating tension within Her Majesty's Government with the collapse of the Stock Markets setting motion to major worry for the countries financial state. Summoned to discuss these proceedings and the bailout application submitted by Nexus Group, the Treasury Select Committee; accompanied by experts from all departments and the Chief Executive Officer of Nexus itself had arrived at the chamber where the meeting could commence.

Committee Chairman, Steve Barker
"Wel-- welcome to the committee" stuttered Steve, "As you know, this session is to be engrossed on the concept of a corporate bailout of Nexus Group; I don't believe it would surprise you that the majority of this meeting will be to discuss the governments response on the larger picture, the current strain the economy is undergoing since the collapse of Russia. We are aware of the pressures the government and Nexus Group are facing since the crash of the Stock Market. I would like to begin with the bailout requested by John Westen, the C-E-O of Nexus Group. If Mr Westen would like to highlight the requirements of government for the committee?"

John Westen, Managing Director for Nexus
"Thank you Chairman, and I thank the Committee for its time today. It is no secret that the Russian Economy has been turbulent in recent months. Opportunities emerged for expansion which, under ideal circumstances, would have poured billions into the Russian Economy as a stabilizer and serve benefit to the Ministry of Defence with the United Shipbuilding Corporation and JSC Russian Helicopters being acquired by Nexus. The circumstances that has followed, due to extreme spending by the Russian Government, has led to a total collapse of their economy. In no uncertain terms, this has taken Nexus down with it. I have confidence that the government is aware that Nexus remains the largest defence contractor for the British Armed Forces and is compiled of BAE System; Force Protection Europe; General Dynamics European Land Systems and MAN SE. We may also include Rolls-Royce into the equation and the two new companies from Russia. This places the group at the most vital to British Defence, but leaves its future unsafe due to the accumulated debt of ..." John paused, locating the figure on his piece of paper in front of him. "Twenty Billion Eight Hundred Seventy Million Five Hundred Forty-Four Thousand Two Hundred Thirty-Eight Dollars and Seventy-Five Cents. Therefore, we would be requesting a complete bailout which would not only protect procurement of military equipment, but something of greater importance to the economy. Employment.

Nexus Group, as it stands, employs a combined total of One Hundred Fifty-Three Thousand Seven Hundred Twenty-Four people. Without a bailout, the possibilities of the group going under rises exponentially; thus damaging the economy. The combination of Russian Helicopters and United Shipbuilding Corporation presently holds One Hundred and Twenty Thousand, the risk of all of these going unemployed would severely reduce the chance of economic recovery in Russia. I urge the government to support the bailout, save hundreds of thousands of jobs; this will, hand in hand, support defence procurement."

Among those in the chamber, a Minister of Defence remained seated but quietly nodded in non-verbal support for Nexus but perhaps was out of exploitation, rather than the economy. The Russian Companies serves as great leverage and maintaining those would benefit the armed forces greatly. Others in the chamber seemed to support the motion as well but it wasn't the committees decision. A few questions were raised for John Westen and were answered promptly; leaving the committee to fill out a report to advise the government. After roughly an additional 30 minutes of discussion and questions, stern eyes turned to the Chancellor of the Exchequer, Edward Murray, who had agreed to be on the chair to answer questions about plans for the emergency economy.

Edward Murray, Chancellor of the Exchequer
"Thank you for your question, I have been discussing the turn of events with the Prime Minister in regards to a contingency and to install preventative measures to protect our economy. From January, there will be a nationwide tax cut by seven point five percent which will encourage investment and stability for millions across the United Kingdom. I will also be backing and calling support for the government bailout of Nexus Group to retain employment and, under new acquisitions, promote growth. The situation is continuing to develop but our goal is to prevent the economy dropping into a recession and allow time for the stock market to settle."

Over the course of the next hour, questions piled on but each response was collected, and providing answers enough to advise of government policy and plans in relation to the growing economic crisis. The conclusion of the committee allowed the priority to turn to the report for the bailout of Nexus and a report would be compiled, with a government response expected in the next twenty four hours.