HC Deb 11 July 1960 vol 626 cc955-7
4. Mr. Strauss

asked the Minister of Aviation whether he can now state to which projects of the aircraft industry he is giving his support, and the extent and manner of such support.

Mr. Sandys

Apart from arrangements already announced, I have discussed with the industry what further aircraft projects would justify financial assistance. As a result, the Government have decided in principle to support the D.H. 121, the Argosy, the V.C. 10 and the Super V.C. 10. This assistance will be on the lines indicated in my statement of 15th February. The terms of the necessary contracts are now being worked out with the firms concerned.

I have also examined with the industry various other projects, which might in due course merit support, but on which it is still too soon to reach final decisions.

Mr. Strauss

At a later stage, can the Minister give us details of the support which will be given to the projects which he has mentioned? He will remember that a great deal of interest was taken in the policy statement concerning the type of support which the Government would give to various projects. Can he tell us now whether we shall be given a broad outline of this support—the quantity, for example—and what conditions will be imposed as a result of the monetary support to be given?

Mr. Sandys

After the contracts have been settled, I undertake to give the House some further information.

Sir A. V. Harvey

Is my right hon. Friend aware that support for the four types of aircraft he has mentioned has already been announced in this House in the past fifteen months? What the industry is waiting for is information about new types of aircraft to be developed—for example, the vertical take-off aircraft—which it will produce in the course of years to come. At the moment, the industry is in the dark and will be glad of any information he can give which might clear up the situation.

Mr. Sandys

I do not think that the industry is in the least in the dark in this matter. I have had the fullest discussion with its representatives and have asked them for any proposals they may have with regard to more forward-looking projects. In my original reply I said: I have also examined with the industry various other projects which might in due course merit support and on which it is too soon to reach final decisions. They include some of the types which my hon. Friend has in mind.

Mr. Chetwynd

Do they include the supersonic airliner? Can the Minister say when he is likely to reach a decision on that? On the general principle, how will he safeguard public interest in relation to these contracts?

Mr. Sandys

Preliminary studies have been made by the two aircraft groups in relation to the supersonic airliner, and those are now being considered. We are very far advanced with our studies of those two projects, and I hope that shall be in a position to make a further statement on the subject before long. As for safeguarding the public purse, the terms of support for the projects that I have named will, as I indicated in my earlier statement, include in all cases provision for the Government to receive a share of the proceeds of sales.

Mr. McMaster

Has my right hon. Friend anything to say about the Britannic production, or vertical take-off research, in which the firm of Short Brothers & Harland is engaged at the moment?

Mr. Sandys

Support for the Britannic will naturally continue. I did not mention it because it is one of the projects in respect of which an announcement has already been made. As for the S.C.1—the vertical take-off aircraft—there is a research contract for the further development of this idea.