§ 2.36 p.m.
§ THE EARL OF KINNOULLMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government how soon they expect the British Air-ways Board to announce a decision on their short/medium-range, wide-bodied aircraft order; and whether they appreciate the importance of the timing of 1144 this order for certain sections of the British aerospace industry.
EARL FERRERSMy Lords, I expect the Airways Board to reach a decision in the next few weeks; both they and the Government appreciate the importance of this decision and of its timing for British industry.
§ THE EARL OF KINNOULLMy Lords, while thanking my noble friend for that encouraging reply, may I ask whether he would be able to go a little further and say how soon "a few weeks" really is? We seem to have heard this type of answer before. Would it be before the end of this month? Secondly, could he say whether the Lockheed Aircraft Corporation, in connection with TriStar, have indicated their concern about the British Airways Board order?
EARL FERRERSMy Lords, I do not think it would be fair to be more precise than in the Answer I gave to my noble friend. In fact, this is a matter which is receiving very urgent consideration and the decision is expected within a few weeks. It is perfectly true that Mr. Haughton visited this country at the end of last week and impressed upon my right honourable friend the importance of the decision. It was as a result of that that my right honourable friend made a statement (and it may be helpful to my noble friend if I quote it) in which he said:
I anticipate that the British Airways Board will reach a decision within the next few weeks on their short/medium-range wide-bodied aircraft order. Both the Board and the Government appreciate the importance of the decision and of its timing for the British aerospace industry. I met Mr. Dan Haughton, Chairman of Lockheed, last night and told him I recognised that the need for a decision was urgent. I understand that in these circumstances Lockheed and Rolls-Royce are extending their current offer to B.E.A. pending a decision.
§ LORD AVEBURYMy Lords, to what extent does the decision on the short/medium-range airliner depend on Lockheed's ability to go ahead with the long-range version which might be more suitable for the routes operated by B.O.A.C.? Is the decision by the British Airways Board dependent on support given by the British Government for developing a new version of the RB 2–11 engine which would be suitable for the long-range version of the 10–11, and when can we expect the decision on the matter?
EARL FERRERSMy Lords, both the substance of the decision and the importance of the timing of that one are being taken account of by Her Majesty's Government. I would only tell the noble Lord, Lord Avebury, that it is up to the British Airways Board to decide on what they believe to be the right and most appropriate aircraft for their use.
§ LORD BESWICKMy Lords, may I ask the noble Earl whether he could make clear what he was talking about in his last answer? Was he referring again to the TriStar or was he referring to the developed version of the RB 2–11.
EARL FERRERSMy Lords, the original Question was to ask Her Majesty's Government how soon an announcement was expected on the short/medium-range aircraft, and it was to that that I was referring.
§ LORD AVEBURYMy Lords, with respect, I am not sure whether the noble Lord has quite got my point. The decision on the short/medium-range version might be dependent on knowledge by the British Airways Board that a long-range version would subsequently become available. That, in turn, is dependent on the willingness of the British Government to support Rolls-Royce in further development of the RB 2–11 engine. What I was trying to ask the noble Earl—and I should be grateful for a reply—is whether a decision in principle on support for new versions of the RB 2–11 has to be taken before the British Airways Board are able to come to a decision on the short and medium-range version of the Lockheed 10–11.
EARL FERRERSMy Lords, these two things are obviously tied up together. On the other hand, the decision about the up-rated version of the RB 2–11 is not the same decision as that to which the Question on the Order Paper refers and the decision of the British Airways Board will of course take into account all the factors which are available to them including the possibility of this new aero engine.
§ LORD LEATHERLANDMy Lords, is the noble Earl aware that when wage demands are referred to an arbitrator one of the factors the arbitrator is asked to take into consideration is the national interest. Cannot the national interest be 1146 similarly taken into account when huge contracts like this are placed on behalf of the Government?
EARL FERRERSMy Lords, it is for the British Airways Board to decide upon the best aircraft for their commercial needs. This decision is then supported, or otherwise, by the Government; but of course the Government have the right of consideration of the decision to which the British Airways Board comes.
§ THE EARL OF KINNOULLMy Lords, while one keeps in mind the value and importance of the TriStar project to Rolls-Royce, could my noble friend give any indication of the present sales of TriStar? Could he also say whether the Government recognise the value in confidence to the project, following the British Airways Board order?
EARL FERRERSMy Lords, I cannot give my noble friend any figures with regard to the sales of TriStar, but the degree of confidence in TriStar may well be altered by the decision of the British Airways Board, either not to buy or to buy the TriStar. The decision is, of course, up to the British Airways Board.