HC Deb 24 June 1963 vol 679 cc940-1
46. Mr. Rankin

asked the Minister of Aviation, if he will make a statement on the conditions attached to the Pan-American order for six Concord airliners.

The Parliamentary Secretary to the Ministry of Aviation (Mr. Neil Marten)

No. Sir. This is a commercial agreement between the airline and the manufacturers and its terms are confidential.

Mr. Rankin

Is the hon. Gentleman aware that when news of this order was first released it was presented as a firm offer to buy six Concords and that later that was qualified by the statement that there were release conditions attached to the contract? In view of the fact that millions of public money are invested in the building of the supersonic plane, ought not the public to have more accurate information about this suggested contract?

Mr. Marten

Certain details have been released about this contract, but others remain confidential because they are of a commercial nature. There would have to be agreement between the two companies, Sud Aviation and the British Aircraft Corporation, the two Governments, and Pan-American Airways: it would take the agreement of all five before anything could be released which is not already agreed.

Sir A. V. Harvey

In view of the large sum of taxpayers' money which is involved, will my hon. Friend satisfy himself that what happened between Boeings and de Havillands will not happen again? On that occasion they went along with the negotiations and backed down at the last minute. Will he satisfy himself that on this occasion Pan-American will not get all the information and then back out at the last minute?

Mr. Marten

We have done our best. There has been speculation about what has, I think, been referred to as an "escape clause". It is only natural that Pan-American should wish to safeguard themselves when ordering an airliner so long before entry into the airlines service. Nevertheless the order is a real one and they will pay a substantial penalty if they change their mind.

Mr. Rankin

The hon. Gentleman recognises that Pan-American is entitled to safeguard itself. Is not he, in turn, entitled to safeguard the interests of the British taxpayer who is providing the money for our part in the building of this machine?

Mr. Marten

Yes, Sir. That is the object of the penalty clause.