Aircraft Industry

HC Deb 01 February 1960 vol 616 cc625-7

38. Mr. Rankin

asked the Minister of Aviation what plans he has for maintaining full employment in the aircraft industry.

Mr. Rippon

The level of employment in the aircraft industry depends upon the total demand for its products, both military and civil. With Government approval, the industry is regrouping itself into larger and stronger units. This reorganisation will enable the industry to compete more effectively in world markets and so improve employment prospects.

Mr. Rankin

Is the Parliamentary Secretary aware that the Minister is responsible for the creation of the five mergers and that, as a result, thousands of men will gradually be squeezed out of their jobs in this industry. Is it not logical that the Minister should assume some responsibility for the future of the men who will lose their jobs as a result of the merger?

Mr. Rippon

The correct argument is exactly the reverse of that put forward by the hon. Member. We believe that the reorganisation which the industry is itself carrying out will improve prospects for employment.

Viscount Hinchingbrooke

Will my hon. Friend or the Minister make a statement to the House about these very large mergers, stating to what extent, if at all, Government money is involved? There have been many newspaper reports, but the public is largely in the dark as to what is happening.

Mr. Speaker

The Question is limited to the matter of employment. The hon. Member has raised a different question.

39. Mr. Rankin

asked the Minister of Aviation to what extent he proposes to seek Government representation on the boards of the five groups now created by the mergers in the aircraft industry.

Mr. Rippon

My right hon. Friend is not contemplating making any proposal of this kind.

Mr. Rankin

Is it not the case that hundreds of millions of pounds of public money will now be invested in research, development and production in the aircraft industry? In view of that fact, surely there ought to be some form of public control, by way of Government representation on the boards of the new mergers.

Mr. Rippon

There is no reason to suppose that the traditional methods of Government control, where public money is invested in industry—that is to say, through technical, financial and contractual means—would be any more effective as a result of Government representation on the boards.

Sir A. V. Harvey

As there is one Government company in existence—or a company controlled by the Government—namely, Short and Harland's. which has lost money over a number of years, would it not be a good thing to bring men from private industry into that company to try to make a profit?

Mr. Rippon

That is an exceptional case, and is not covered by the Question, because it is not a group created by a merger.

Mr. Strauss

In view of the very large sums of public money paid into this industry in one form or another, would not the hon. Gentleman agree that there is a strong case for the Government's demanding some equity shareholding in these companies, which would carry with it the right of appointing directors to the boards?

Mr. Rippon

There are other means of securing a return on the Government's expenditure, such as a levy on sales to other customers, as is provided for in contracts.

Viscount Hinchingbrooke

May I now ask my question on the wider aspect of the matter? Will there be a general statement by the Minister as to what is happening now in relation to these mergers?

Mr. Rippon

My right hon. Friend is likely to make a statement shortly.

Mr. Rankin

Are we to assume that there is to be no form of accountability to the public and this House for these vast sums of money?

Mr. Rippon

There is accountability in the ways I have suggested, but the Government do not want to become involved in day-to-day management. The House has evidence to show that the industry has always shown a readiness to co-operate with its major customers.