HC Deb 26 April 1967 vol 745 cc1600-2
46. Mr. Maxwell-Hyslop

asked the President of the Board of Trade whether he has yet reached a decision on the proposal made to him by British European Airways for the purchase of a number of BAC211s.

21. Mr. A. Royle

asked the President of the Board of Trade if he has reached a decision on British European Airway's application to order BAC211 aircraft.

Mr. Jay

As I informed the hon. Member for Banbury (Mr. Marten) on 15th March, I am examining the complex issues raised by B.E.A.'s proposal. They are naturally related to the consideration which the Government, together with the Government of France and Germany, are giving to the possibility of a joint Anglo-French-German airbus project. We are conscious of the need of the airline and the manufacturers for as early a decision as possible. When it is reached I will, as I have promised, make a statement to the House.

Mr. Maxwell-Hyslop

Will the right hon. Gentleman please avoid two pitfalls—sponsoring an aircraft with no further substantial export sales or delaying a positive decision on the airbus until part of the market has already gone to America?

Mr. Jay

There are more than two pitfalls in this matter and I am trying to avoid them all.

Mr. Robert Howarth

Is my right hon. Friend aware that the estimated development cost of the BAC211 is roughly £100 million and the estimated cost of the Trident III is about £17 million? Does not this mean that this is a more obvious choice for B.E.A. than the aircraft that they have been requesting?

Mr. Jay

I would not endorse my hon. Friend's exact figures. But though cost is one of the more important factors, it is by no means the only factor involved in this choice.

Mr. Lubbock

Will the right hon. Gentleman give some approximate figures of the development cost of the BAC211? What assessment has been made of the export prospects? Will he not agree that, however much it costs, it would be more worthwhile for this country to go ahead with our friends in Europe in developing an airbus than for us to waste our money in developing an aircraft which will have no sales abroad?

Mr. Jay

I do not think that we should disregard cost altogether. We have sometimes gone too far towards that in the past. These problems of likely costs and possible export markets are being examined now with great care, and I do not think that we should be too hasty in coming to a decision.

Mr. R. Carr

Will the President of the Board of Trade avoid the biggest pitfall of all in this country, which is to delay a decision and positive action so long that B.E.A. can neither remain profitable nor maintain its proper volume of a growing market?

Mr. Jay

I am aware of that, too, but B.E.A. has placed an order for 18 of the existing latest BAC111 with an option for six more, and it is not a matter which is urgent in a matter of days.