Aircraft Industry (Hansard, 9 December 1957)

§ 1. Mr. Beswick
asked the Minister of Supply if he will give the terms of reference of the committee inquiring into the aircraft industry.

§ 11. Mr. Willey
asked the Minister of Supply when he expects the interdepartmental examination of the aircraft industry to be completed.

§ 13 and 14. Mr. Mikardo
asked the Minister of Supply (1) whether the Departmental committee which he has set up to review the future of the aircraft manufacturing industry will be willing to receive representations from trades unions representing workers in industry;
(2) whether the Departmental committee which he has set up to review the future of the aircraft manufacturing industry will be empowered, within its terms of reference, to consider the possibility of diversification of the industry's products.

§ The Minister of Supply (Mr. Aubrey Jones)
The purpose of the study by senior officials of the Departments concerned is to assess the national importance 870 of the industry and, in the light of this assessment and of recent defence changes, to make recommendations to Ministers on future Government policy towards the industry and, in particular, on the scale on which the Government should continue to support aeronautical research. As decisions are reached, I shall, of course, make statements, and I would hope to be able to make a statement on Government policy on the research question before the spring.
It would militate against early decisions to formalise the inter-departmental study and to arrange for representations by outside bodies. I myself, however, am always happy to receive the leaders of the trade unions as well as of the employers, and the views of both will be borne in mind when decisions are made. The inter-departmental study will certainly take account of the possibility of diversifying the industry's products, but action on this lies primarily with the industry itself.

§ Mr. Beswick
May I thank the Minister for his very full reply and ask him if he is aware that it will give satisfaction to those of us who are interested in the industry? May we also take it from what he says that this committee is not a Treasury-dominated committee seeking simply to effect economies, but is setting out to see if it can put the industry on a sounder basis and enable it to expand and develop?

§ Mr. Jones
I thank the hon. Gentleman for his remarks. No, this is not a Treasury-dominated study, but, of course, it is really difficult to exclude the Treasury from any major question of Government policy.

§ 2. Mr. Bence
asked the Minister of Supply what steps he proposes to take to bring about greater integration of the aircraft industry other than by the placing of contracts.

§ Mr. Aubrey Jones
The industry's own concern for its future well-being and the power of awarding contracts possessed by the Government as the industry's largest customer should together bring about greater integration.

§ Mr. Bence
Whilst accepting that the Government are the industry's biggest customers, does not the right hon. 871 Gentleman consider that if greater integration takes place as a result of movement within the industry—and as it is mainly supported by public funds—the Government should take responsibility for greater integration into larger units, or perhaps into one unit, and therefore see that there is some public accountability and responsibility by the industry to the Government?

§ Mr. Jones
Surely there are two things here. The Government ought certainly, in my view, to use their position as customers to encourage integration. On the other hand, I would consider it quite wrong for the Government to suggest that A should associate or amalgamate with B. I am trying to do the first and to avoid the second, which I think is undesirable.

§ Sir A. V. Harvey
Does not my right hon. Friend agree that it would be easier for the industry to facilitate its future if he and his right hon. Friend the Minister of Defence were to be clear in their own minds about their future requirements at least for the next two years?

§ Mr. Jones
I think that if my hon. Friend will consult the industry it will tell him that I endeavour to inform it of future programmes as soon as they are, in fact, known to me.

§ 3. Mr. Bence
asked the Minister of Supply what consideration he has given to the development of aircraft production in existing units in Scotland.

§ Mr. Aubrey Jones
The aircraft industry in Scotland has been less affected by recent defence changes than the industry elsewhere. As for the future, Scottish companies or companies with factories in Scotland will be given every opportunity of competing for contracts for which they are suitable.

§ Mr. Bence
In view of the fact that there is likely to be greater integration within the industry and that the Government's policy is to force such integration by the placing of contracts, can the right hon. Gentleman give an assurance that as integration takes place there will be no diminution or, perhaps, an ending of the aircraft industry in Scotland? Will the right hon. Gentleman see that contracts 872 are placed with the Scottish aircraft industry so that it can be sustained and expanded?

§ Mr. Jones
I think it follows from what I have said that the aircraft industry in Scotland is relatively well placed. On the other hand, as I said last week, the industry has to face some degree of contraction, and it would be quite wrong. I think, for Scotland to expect exemption from this contraction.

§ Sir T. Moore
Is my right hon. Friend aware that Scotland is very grateful to the Minister and to the Government for giving financial aid and, technical assistance to Scottish Aviation Limited in the production of the Prestwick Pioneer, which unhappily crashed yesterday?

§ Mr. Jones
I would express my regrets and that of the whole House at what happened yesterday, and at the death of the firm's managing director.

§ Mr. Steele
While associating this side of the House with the latter remarks of the Minister, may I ask him whether his Department has come to any conclusion about that part of the factory in Dumbarton which is owned by the Ministry of Supply?

§ Mr. Jones
No, Sir. I have indicated to the Blackburn Aircraft Company that the Government would like to lease their part of the entire factory to a fresh tenant, but no fresh tenant has yet been found.

§ 15. Mr. Mikardo
asked the Minister of Supply what steps he is taking to ensure that technical and managerial personnel in the aircraft manufacturing industry who are made redundant by the present run-down in the industry will not be lost to this country.

§ Mr. Aubrey Jones
It is not the policy of Her Majesty's Government to prevent emigration, but one of the purposes of recent defence changes was to release skilled personnel for the many other needs existing for them in this country, and it is the Government's hope that displaced scientists and engineers will take advantage of the opportunities awaiting them here.

§ Mr. Mikardo
Is not the right hon. Gentleman aware that there is a greater chance of these displaced persons taking advantage of other opportunities in this country if they are told well in advance 873 of changes taking place in the industry? Does that not underline the danger of the present arrangement under which many of these changes are taking place among the boards of the companies concerned without the technical and managerial personnel being told until the very last moment?

§ Mr. Jones
As I said in answer to an earlier supplementary question, I endeavour to let the industry know of impending changes as soon as they are known to me. So far as I know, firms take their staffs into their confidence.