HC Deb 07 December 1959 vol 615 cc3-4
3. Mr. Skeffington

asked the Minister of Aviation whether firm arrangements have now been made between his Department and the Fairey Aviation Company to develop the Rotodyne aircraft.

13. Mr. Hunter

asked the Minister of Aviation what further developments have taken place between his Department and the Fairey Aviation Company to develop the Rotodyne aircraft.

Mr. Sandys

Last August the Government decided to contribute to the cost of developing a Tyne engined version of the Rotodyne to meet the requirements of B.E.A. and the Services, on terms which were agreed with the firm, subject to negotiation of a detailed contract. The terms included an undertaking by the Government to reimburse the company for the whole of its subsequent development costs should a specified minimum production order not be placed. A contract embodying this arrangement was recently sent to the firm for its signature. However, it has informed me in a letter (which I received this morning) that it is no longer prepared to proceed on the terms envisaged last August, and that it wants additional Government financial assistance, to an extent which it has not yet specified. I have asked my Department to discuss this unsatisfactory position with the firm forthwith.

Mr. Skeffington

Would not the Minister agree that this is a very unfortunate position, because this aircraft, which is of very novel design, has been hanging about for a long period of time, some men have already been dispersed or dismissed, and there is a real danger, I understand, that the production team in the factory may not be able to be kept there much longer if some finality cannot be reached? I am sure the Minister will agree that the matter needs urgent attention now?

Mr. Sandys

I explained in my answer that I thought we had settled this matter with the firm last August when we decided to support the Tyne-engined version, although we still had not a firm order from B.E.A. I do not know what has been going wrong now, but we shall look into it right away.

Mr. Strauss

In view of the importance of this development from the national point of view, if the firm is unreasonable in its attitude and refuses to play, will the Minister consider the most drastic action, if necessary invoking war-time action and taking this firm over?

Mr. Sandys

I do not think it is a very strong firm, but I would not go to the length the right hon. Gentleman suggested.

Sir A. V. Harvey

Will the Minister ask the right hon. Member for Vauxhall (Mr. Strauss) to read the last report of the Fairey Aviation Company, when he might be more enlightened on the financial position of the company? Leaving that aside, will my right hon. Friend take that point into account and consider this matter in the light of the rationalisation of the industry which he expects to take place, in order to see that the country does not lose this very worth-while project?

Mr. Sandys

That is my main concern.