Westland affair
Encyclopedia
The Westland affair was a political scandal for the British Conservative
government of Margaret Thatcher
in 1986. The argument was a result of differences of opinion within the government as to the future of the United Kingdom helicopter
industry. The struggling Westland
company, Britain's last helicopter manufacturer, was to be the subject of a rescue bid. While the Defence Secretary Michael Heseltine
favoured a European solution, integrating Westland and British Aerospace
(BAe) with Italian (Agusta
) and French companies, the Prime Minister and the Trade and Industry Secretary Leon Brittan wanted to see Westland merge with Sikorsky, an American company. It resulted in Heseltine's resignation.
's bid for the company in April 1985. By June Bristow was threatening to end his bid unless the Government assured him that there would be future orders for the company from the Ministry of Defence
and that the repayment of over £40 million of launch aid for Westland's newest helicopter from the Department of Trade and Industry was waived. At a Government meeting it was decided that Norman Tebbit
should persuade the Bank of England
to cooperate with the main creditors in the hope that a recovery plan and new management would end the threat of receivership
. Bristow withdrew his bid and Sir John Cuckney became chairman of Westland.
and Nigel Lawson
on 5 and 6 December. Brittan argued that NAD's opposition should be set aside, but Heseltine, Howe and Tebbit disagreed. Thatcher called a Cabinet meeting for 9 December, which Cuckney also attended to give a speech. Cuckney said that it was the management's view that the Sikorsky option was the best one. A majority of the Cabinet meeting agreed to dismiss NAD's opposition but Thatcher gave consent to both Heseltine and Brittan to explore a possible European deal which Westland's management could accept. She gave them until 4 pm on 13 December and if by then Westland rejected the European package, NAD's recommendations would be formally rejected. Westland chose Sikorsky instead of the European firms but Heseltine wanted another Cabinet meeting. Thatcher rejected his demands because Westland had made up its mind on which deal it would recommend.
At a Cabinet meeting on 12 December Heseltine, without warning, tried to discuss Westland but Thatcher was not willing to without the necessary papers. Heseltine was angry and claimed a meeting on Westland had been cancelled but Thatcher argued that no such meeting had ever been scheduled. Heseltine wanted his views on the alleged cancelled meeting to be included in the Cabinet minutes; it was not going to be mentioned until the Cabinet Secretary
noticed they were absent, and added it himself.
Later, the European consortium came up with a new bid and Heseltine thought the Government's policy should be changed to enable the European bid to succeed. The disagreements between Brittan and Heseltine over Westland became public and were widely reported in the media.
In early January Lloyds Bank
sent Heseltine a letter and in Heseltine's reply he listed the things which in his view would happen if Westland chose Sikorsky instead of the European alternative. Heseltine claimed, contradicting Thatcher's reassurances to Cuckney, that Westland risked losing future European orders if the Sikorsky option was chosen. Heseltine leaked this letter to The Times
. The letter, on Thatcher's request, was referred to the Solicitor-General
, Patrick Mayhew
. Mayhew sent a reply to Heseltine, noting "material inaccuracies" in Heseltine's letter. On 6 January Mayhew's letter was selectively leaked to the Press Association
by the Chief Information Officer of the DTI, Colette Bowe on whose orders became a controversy. The Attorney-General
, Sir Michael Havers, took a stern view of leaks and threatened to resign if an official inquiry was not set up to look into it. Thatcher agreed to do this.
A Cabinet meeting on Westland was scheduled for 9 January. Brittan and Heseltine both put forward their views. Thatcher concluded by saying that as this was a time of business negotiations all answers relating to Westland should be cleared through the Cabinet Office. Heseltine agreed. Nicholas Ridley
intervened and asked whether this included not only future statements but repetition of past statements too. Thatcher gave an affirmative to both. Heseltine argued that he should be allowed to reaffirm statements he had already made but Thatcher disagreed, arguing that Cabinet collective responsibility
should be observed. Heseltine was then said to have replied that there had been no collective responsibility in Westland. Peter Jenkins
claims that Heseltine lost his cool, gathered his papers, got up from his chair and proclaimed "I can no longer be a member of this Cabinet" and then left the room. Heseltine then stormed out of Downing Street
and announced his resignation to the assembled media. Within a few hours of his resignation, Heseltine produced a twenty-two minute statement of 2,500 words detailing his grievances. He blamed Thatcher's intransigence, saying his views were ignored. Thatcher sent a letter to Heseltine, as is customary on these occasions.
Thatcher then adjourned the Cabinet for a brief break. George Younger
was then offered and accepted the office of Secretary of State for Defence
, which Heseltine had just relinquished. The Prime Minister's office then requested Malcolm Rifkind
to take up Younger's previous job, Secretary of State for Scotland
, which he accepted. Cabinet then resumed. On 13 January Thatcher held a meeting with Whitelaw, Brittan, Younger and John Wakeham
to decide what should then happen. The conclusion was that Brittan, rather than the Prime Minister, should reply to Heseltine's statement on that day. When in the House of Commons, Heseltine asked whether any letters from British Aerospace had been received. Brittan did receive a letter from BAe but it was marked Private and Strictly Confidential so he said in effect that he did not receive one. He was forced to return to the House a few hours later to apologise.
On 15 January there was a debate on Westland in the Commons in which Thatcher replied to Neil Kinnock
, the leader of the Labour Party
. Thatcher listed all the ministerial, committee and Cabinet meetings on Westland. Heseltine then made a speech criticising the way collective responsibility had been damaged over Westland.
Sir Robert Armstrong
, the Cabinet Secretary
, held an inquiry into the leaking of Mayhew's letter and reported his findings to the Prime Minister on 21 January. Armstrong concluded that Brittan had told Bowe to leak Mayhew's letter through a telephone conversation to Roger Mogg, Brittan's private secretary. Thatcher is said to have asked Brittan four times: "Leon, why didn't you tell me." Havers, who demanded the inquiry, later claimed: "Unless the PM is the most marvellous actress I've ever seen in my life she was as shocked as anybody that in fact it was on Leon Brittan's instructions."
On 23 January Thatcher had to make a speech to the Commons on Armstrong's inquiry. A meeting of the 1922 Committee
, Conservative back-benchers, demanded Brittan's resignation. On 24 January therefore Brittan resigned because "it has become clear to me that I no longer command the full confidence of my colleagues."
On 27 January Labour set down an adjournment motion. Whitelaw, Howe, Wakeham, John Biffen
and Douglas Hurd
helped Thatcher draft her speech for this occasion. Ronald Millar
, one of the Prime Minister's friends, was asked to help revise the speech and Thatcher remarked to him that she might cease to be Prime Minister by six o'clock that evening if things went bad. Neil Kinnock, the leader of the Opposition, was generally thought to have made a poor opening speech. Alan Clark
recorded in his diary that "For a few seconds Kinnock had her cornered...But then he had an attack of wind, gave her time to recover." Heseltine was frustrated at Kinnock's failure to exploit the moment and claimed that Thatcher's statement brought "the politics of the matter to an end" and that he would support the Government in the lobby.
episode "Man Overboard
".
Conservative 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...
government of Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
in 1986. The argument was a result of differences of opinion within the government as to the future of the United Kingdom helicopter
Helicopter
A helicopter is a type of rotorcraft in which lift and thrust are supplied by one or more engine-driven rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forwards, backwards, and laterally...
industry. The struggling Westland
Westland Aircraft
Westland Aircraft was a British aircraft manufacturer located in Yeovil in Somerset. Formed as a separate company by separation from Petters Ltd just before the start of the Second World War, Westland had been building aircraft since 1915...
company, Britain's last helicopter manufacturer, was to be the subject of a rescue bid. While the Defence Secretary Michael Heseltine
Michael Heseltine
Michael Ray Dibdin Heseltine, Baron Heseltine, CH, PC is a British businessman, Conservative politician and patron of the Tory Reform Group. He was a Member of Parliament from 1966 to 2001 and was a prominent figure in the governments of Margaret Thatcher and John Major...
favoured a European solution, integrating Westland and 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...
(BAe) with Italian (Agusta
Agusta
Agusta is an Italian helicopter manufacturer. It is based in Samarate, Northern Italy. It is a subsidiary of Finmeccanica. The company was founded by Count Giovanni Agusta in 1923, who flew his first airplane in 1907...
) and French companies, the Prime Minister and the Trade and Industry Secretary Leon Brittan wanted to see Westland merge with Sikorsky, an American company. It resulted in Heseltine's resignation.
April 1985
The Westland affair originated with Alan BristowAlan Bristow
Alan Edgar Bristow, OBE, FRAeS founded one of the world's largest helicopter service companies, Bristow Helicopters Ltd, which prospered primarily in the international oil and mineral exploration and extraction industries but also spread into search and rescue, peacekeeping and other fields.Born...
's bid for the company in April 1985. By June Bristow was threatening to end his bid unless the Government assured him that there would be future orders for the company from the Ministry of Defence
Ministry of Defence (United Kingdom)
The Ministry of Defence is the United Kingdom government department responsible for implementation of government defence policy and is the headquarters of the British Armed Forces....
and that the repayment of over £40 million of launch aid for Westland's newest helicopter from the Department of Trade and Industry was waived. At a Government meeting it was decided that Norman Tebbit
Norman Tebbit
Norman Beresford Tebbit, Baron Tebbit, CH, PC , is a British politician. A member of the Conservative Party, he served in the Cabinet from 1981 to 1987 as Secretary of State for Employment...
should persuade the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
to cooperate with the main creditors in the hope that a recovery plan and new management would end the threat of receivership
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...
. Bristow withdrew his bid and Sir John Cuckney became chairman of Westland.
November 1985
Shortly thereafter an American company was thought to be preparing to bid for the company. Cuckney opposed this particular bid, as did Tebbit and Heseltine. Cuckney proposed that a new minority shareholder of 29.9% be introduced. No British firm was willing to enter this but an American company, Sikorsky, was interested. In November 1985 Sikorsky made an offer and Westland's management were favourable. Heseltine was opposed to this and called a conference of the National Armaments Directors (NAD) of Britain, France, Italy and West Germany to sign a document which would commit each country to only purchase helicopters designed and manufactured in Europe. If Westland went ahead with Sikorsky its helicopters, under this new agreement, would be unable to be bought by the four governments. Thatcher's and Leon Brittan's view was that it was up to Westland to decide which deal it wanted, and not the Government.December 1985
Thatcher then convened two meetings to discuss Westland with Heseltine, Brittan, Tebbit, William Whitelaw, Geoffrey HoweGeoffrey Howe
Richard Edward Geoffrey Howe, Baron Howe of Aberavon, CH, QC, PC is a former British Conservative politician. He was Margaret Thatcher's longest-serving Cabinet minister, successively holding the posts of Chancellor of the Exchequer, Foreign Secretary, and finally Leader of the House of Commons...
and Nigel Lawson
Nigel Lawson
Nigel Lawson, Baron Lawson of Blaby, PC , is a British Conservative politician and journalist. He was a Member of Parliament representing the constituency of Blaby from 1974–92, and served as the Chancellor of the Exchequer in the government of Margaret Thatcher from June 1983 to October 1989...
on 5 and 6 December. Brittan argued that NAD's opposition should be set aside, but Heseltine, Howe and Tebbit disagreed. Thatcher called a Cabinet meeting for 9 December, which Cuckney also attended to give a speech. Cuckney said that it was the management's view that the Sikorsky option was the best one. A majority of the Cabinet meeting agreed to dismiss NAD's opposition but Thatcher gave consent to both Heseltine and Brittan to explore a possible European deal which Westland's management could accept. She gave them until 4 pm on 13 December and if by then Westland rejected the European package, NAD's recommendations would be formally rejected. Westland chose Sikorsky instead of the European firms but Heseltine wanted another Cabinet meeting. Thatcher rejected his demands because Westland had made up its mind on which deal it would recommend.
At a Cabinet meeting on 12 December Heseltine, without warning, tried to discuss Westland but Thatcher was not willing to without the necessary papers. Heseltine was angry and claimed a meeting on Westland had been cancelled but Thatcher argued that no such meeting had ever been scheduled. Heseltine wanted his views on the alleged cancelled meeting to be included in the Cabinet minutes; it was not going to be mentioned until the Cabinet Secretary
Cabinet Secretary
A Cabinet Secretary is almost always a senior official who provides services and advice to a Cabinet of Ministers. In many countries, the position can have considerably wider functions and powers, including general responsibility for the entire civil service...
noticed they were absent, and added it himself.
Later, the European consortium came up with a new bid and Heseltine thought the Government's policy should be changed to enable the European bid to succeed. The disagreements between Brittan and Heseltine over Westland became public and were widely reported in the media.
January 1986
Westland's management were worried about future business with European governments and Thatcher replied to Cuckney to the effect that the British Government would continue to support it. Heseltine wanted to include less supportive views, but Thatcher did not allow this.In early January Lloyds Bank
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...
sent Heseltine a letter and in Heseltine's reply he listed the things which in his view would happen if Westland chose Sikorsky instead of the European alternative. Heseltine claimed, contradicting Thatcher's reassurances to Cuckney, that Westland risked losing future European orders if the Sikorsky option was chosen. Heseltine leaked this letter to The Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...
. The letter, on Thatcher's request, was referred to the Solicitor-General
Solicitor General for England and Wales
Her Majesty's Solicitor General for England and Wales, often known as the Solicitor General, is one of the Law Officers of the Crown, and the deputy of the Attorney General, whose duty is to advise the Crown and Cabinet on the law...
, Patrick Mayhew
Patrick Mayhew
Patrick Barnabas Burke Mayhew, Baron Mayhew of Twysden, PC is a British barrister, and Conservative Party politician.He was educated at Tonbridge School and Balliol College, Oxford...
. Mayhew sent a reply to Heseltine, noting "material inaccuracies" in Heseltine's letter. On 6 January Mayhew's letter was selectively leaked to the Press Association
Press Association
The Press Association is the national news agency of the United Kingdom and Ireland, supplying multimedia news content to almost all national and regional newspapers, television and radio news, as well as many websites with text, pictures, video and data content globally...
by the Chief Information Officer of the DTI, Colette Bowe on whose orders became a controversy. The Attorney-General
Attorney General for England and Wales
Her Majesty's Attorney General for England and Wales, usually known simply as the Attorney General, is one of the Law Officers of the Crown. Along with the subordinate Solicitor General for England and Wales, the Attorney General serves as the chief legal adviser of the Crown and its government in...
, Sir Michael Havers, took a stern view of leaks and threatened to resign if an official inquiry was not set up to look into it. Thatcher agreed to do this.
A Cabinet meeting on Westland was scheduled for 9 January. Brittan and Heseltine both put forward their views. Thatcher concluded by saying that as this was a time of business negotiations all answers relating to Westland should be cleared through the Cabinet Office. Heseltine agreed. Nicholas Ridley
Nicholas Ridley, Baron Ridley of Liddesdale
Nicholas Ridley, Baron Ridley of Liddesdale, PC was a British Conservative Party politician and government minister.-Personal life:...
intervened and asked whether this included not only future statements but repetition of past statements too. Thatcher gave an affirmative to both. Heseltine argued that he should be allowed to reaffirm statements he had already made but Thatcher disagreed, arguing that Cabinet collective responsibility
Cabinet collective responsibility
Cabinet collective responsibility is constitutional convention in governments using the Westminster System that members of the Cabinet must publicly support all governmental decisions made in Cabinet, even if they do not privately agree with them. This support includes voting for the government in...
should be observed. Heseltine was then said to have replied that there had been no collective responsibility in Westland. Peter Jenkins
Peter Jenkins (journalist)
Peter George James Jenkins was a British journalist and Associate Editor of The Independent. During his career he wrote regular columns for The Guardian, The Sunday Times as well as the The Independent....
claims that Heseltine lost his cool, gathered his papers, got up from his chair and proclaimed "I can no longer be a member of this Cabinet" and then left the room. Heseltine then stormed out of Downing Street
Downing Street
Downing Street in London, England has for over two hundred years housed the official residences of two of the most senior British cabinet ministers: the First Lord of the Treasury, an office now synonymous with that of Prime Minister of the United Kingdom, and the Second Lord of the Treasury, an...
and announced his resignation to the assembled media. Within a few hours of his resignation, Heseltine produced a twenty-two minute statement of 2,500 words detailing his grievances. He blamed Thatcher's intransigence, saying his views were ignored. Thatcher sent a letter to Heseltine, as is customary on these occasions.
Thatcher then adjourned the Cabinet for a brief break. George Younger
George Younger, 4th Viscount Younger of Leckie
George Kenneth Hotson Younger, 4th Viscount Younger of Leckie KT KCVO TD PC was a British politician and banker....
was then offered and accepted the office of Secretary of State for Defence
Secretary of State for Defence
The Secretary of State for Defence, popularly known as the Defence Secretary, is the senior Government of the United Kingdom minister in charge of the Ministry of Defence, chairing the Defence Council. It is a Cabinet position...
, which Heseltine had just relinquished. The Prime Minister's office then requested Malcolm Rifkind
Malcolm Rifkind
Sir Malcolm Leslie Rifkind KCMG QC MP is a British Conservative Party politician and Member of Parliament for Kensington. He served in various roles as a cabinet minister under Prime Ministers Margaret Thatcher and John Major, including Secretary of State for Scotland , Defence Secretary and...
to take up Younger's previous job, Secretary of State for Scotland
Secretary of State for Scotland
The Secretary of State for Scotland is the principal minister of Her Majesty's Government in the United Kingdom with responsibilities for Scotland. He heads the Scotland Office , a government department based in London and Edinburgh. The post was created soon after the Union of the Crowns, but was...
, which he accepted. Cabinet then resumed. On 13 January Thatcher held a meeting with Whitelaw, Brittan, Younger and John Wakeham
John Wakeham
John Wakeham, Baron Wakeham, PC, DL is a businessman and British Conservative Party politician and the current Chancellor of Brunel University.He was a director of Enron from 1994 until its bankruptcy in 2001....
to decide what should then happen. The conclusion was that Brittan, rather than the Prime Minister, should reply to Heseltine's statement on that day. When in the House of Commons, Heseltine asked whether any letters from British Aerospace had been received. Brittan did receive a letter from BAe but it was marked Private and Strictly Confidential so he said in effect that he did not receive one. He was forced to return to the House a few hours later to apologise.
On 15 January there was a debate on Westland in the Commons in which Thatcher replied to Neil Kinnock
Neil Kinnock
Neil Gordon Kinnock, Baron Kinnock is a Welsh politician belonging to the Labour Party. He served as a Member of Parliament from 1970 until 1995 and as Labour Leader and Leader of Her Majesty's Loyal Opposition from 1983 until 1992 - his leadership of the party during nearly nine years making him...
, the leader 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...
. Thatcher listed all the ministerial, committee and Cabinet meetings on Westland. Heseltine then made a speech criticising the way collective responsibility had been damaged over Westland.
Sir Robert Armstrong
Robert Armstrong, Baron Armstrong of Ilminster
Robert Temple Armstrong, Baron Armstrong of Ilminster GCB, CVO , son of the musician Sir Thomas Armstrong, is a British life peer and former civil servant.-Life:...
, the Cabinet Secretary
Cabinet Secretary
A Cabinet Secretary is almost always a senior official who provides services and advice to a Cabinet of Ministers. In many countries, the position can have considerably wider functions and powers, including general responsibility for the entire civil service...
, held an inquiry into the leaking of Mayhew's letter and reported his findings to the Prime Minister on 21 January. Armstrong concluded that Brittan had told Bowe to leak Mayhew's letter through a telephone conversation to Roger Mogg, Brittan's private secretary. Thatcher is said to have asked Brittan four times: "Leon, why didn't you tell me." Havers, who demanded the inquiry, later claimed: "Unless the PM is the most marvellous actress I've ever seen in my life she was as shocked as anybody that in fact it was on Leon Brittan's instructions."
On 23 January Thatcher had to make a speech to the Commons on Armstrong's inquiry. A meeting of the 1922 Committee
1922 Committee
In British politics, the 1922 Committee is a committee of Conservative Members of Parliament. Voting membership is limited to backbench MPs although frontbench Conservative MPs have an open invitation to attend meetings. While the party was in opposition, frontbench MPs other than the party leader...
, Conservative back-benchers, demanded Brittan's resignation. On 24 January therefore Brittan resigned because "it has become clear to me that I no longer command the full confidence of my colleagues."
On 27 January Labour set down an adjournment motion. Whitelaw, Howe, Wakeham, John Biffen
John Biffen
William John Biffen, Baron Biffen, PC, DL , was a Conservative member of the House of Lords, who previously spent 36 years in the House of Commons.-Early life:...
and Douglas Hurd
Douglas Hurd
Douglas Richard Hurd, Baron Hurd of Westwell, CH, CBE, PC , is a British Conservative politician and novelist, who served in the governments of Margaret Thatcher and John Major between 1979 and his retirement in 1995....
helped Thatcher draft her speech for this occasion. Ronald Millar
Ronald Millar
Sir Ronald Graeme Millar was an English actor, writer and dramatist.Ronald Millar joined the Royal Navy in 1940 after having studied at King's College, Cambridge, England, for a year. He established himself as a playwright after the second world war, and between 1948 and 1954 lived in Hollywood,...
, one of the Prime Minister's friends, was asked to help revise the speech and Thatcher remarked to him that she might cease to be Prime Minister by six o'clock that evening if things went bad. Neil Kinnock, the leader of the Opposition, was generally thought to have made a poor opening speech. Alan Clark
Alan Clark
Alan Kenneth Mackenzie Clark was a British Conservative MP and diarist. He served as a junior minister in Margaret Thatcher's governments at the Departments of Employment, Trade, and Defence, and became a privy counsellor in 1991...
recorded in his diary that "For a few seconds Kinnock had her cornered...But then he had an attack of wind, gave her time to recover." Heseltine was frustrated at Kinnock's failure to exploit the moment and claimed that Thatcher's statement brought "the politics of the matter to an end" and that he would support the Government in the lobby.
Subsequent events
Heseltine's wish to see a strong European competitor has emerged in the form of the Eurocopter group and Agusta eventually merged with Westland in 2000 and then acquired GKN's stake in 2004.Popular culture
The affair was satirised in the Yes, Prime MinisterYes Minister
Yes Minister is a satirical British sitcom written by Antony Jay and Jonathan Lynn that was first transmitted by BBC Television between 1980–1982 and 1984, split over three seven-episode series. The sequel, Yes, Prime Minister, ran from 1986 to 1988. In total there were 38 episodes—of which all but...
episode "Man Overboard
Man Overboard (Yes, Prime Minister)
“Man Overboard” is the ninth episode of the BBC comedy series Yes, Prime Minister and was first broadcast 3 December 1987. It satirises the Westland affair, which took place the previous year.- Plot :...
".