HC Deb 09 December 1964 vol 703 cc1548-51
The Minister of Aviation (Mr. Roy Jenkins)

With permission, Mr. Speaker, I will make a statement about the Committee which is to examine the future place of the aircraft industry in the British economy.

Lord Plowden has accepted the Government's invitation to serve as Chairman, and the Committee will have the following terms of reference: To consider what should be the future place and organisation of the aircraft industry in relation to the general economy of the country, taking into account the demands of national defence, export prospects, the comparable industries of other countries. and the relationship of the industry with Government activities in the aviation field; and to make recommendations on any steps and measures necessary. From this House the right hon. Member for Birmingham, Hall Green (Mr. Aubrey Jones), and my hon. Friend the Member for Edmonton (Mr. Albu) have agreed to serve on the Committee. The other members will be:

  • Mr. David H. Barran, who is a managing Director of the Shell International Petroleum Co. Ltd.
  • Mr. Fred Hayday, the National Industrial Officer of the National Union of General and Municipal Workers, and a former Chairman of the Trades Union Congress.
  • Admiral of the Fleet Sir Caspar John, who was, on his retirement, in 1963, the First Sea Lord, and is now Chairman of the Housing Corporation.
  • Mr. Christopher McMahon, an economist with the Bank of England and Fellow of Magdalen College, Oxford.
  • Sir William Penney, Chairman of the Atomic Energy Authority.
The Secretariat will be headed by Mr. Norman Craig, an Assistant Secretary in my Department, and the Committee will have every assistance it requires from my Department.

I would like to thank all the members of the Committee for agreeing to take part in this most important inquiry, and to wish them success and speed in their deliberations.

Mr. Maude

Is it intended that this inquiry should cover the whole of the aero-space industry rather than only the airframe and aero-engine industries?

Secondly, could the right hon. Gentleman give the House an assurance that the sitting of this Committee, which, presumably, will last not less than six months, will not cause postponement in the urgently necessary decisions to be made on the projects now under review in the industry?

Thirdly, could the right hon. Gentleman say what he expects the Committee to find out which his Ministry, with its considerable expertise and its access to expert sources, does not already know or can very easily find out?

Mr. Jenkins

The Committee will cover the whole field of what is now known as the aero-space industry.

I can give the hon. Gentleman and the House the assurance that there will be no question of postponing decisions on projects. These decisions, which, I hope, will be arrived at as quickly as possible, will be important fixed points for the Committee in its deliberations.

I would certainly hesitate to tell the hon. Gentleman or the House what I expect the Committee to tell me when it has deliberated.

Mr. Snow

Not with particular reference to the Concord project, but with reference to international collaboration on production, may I assume that the Committee will have that within its terms of reference to investigate the possibilities?

Mr. Jenkins

Yes, Sir. My hon. Friend will be aware that I specifically mentioned within the terms of reference the comparable industries of other countries. I am particularly anxious that the Committee should bear in mind in its work the possibility of international collaboration.

Sir A. V. Harvey

In this very important matter will the right hon. Gentleman bear in mind that in view of the many statements which have been made, and others which have not been made, many people employed in this and allied industries are going through a period of great anxiety? When the Government consider whether or not they should proceed with projects, will the right hon. Gentleman take into account the possibility of continuing the projects with other countries, which is very important? Finally, can the right hon. Gentleman say how long this inquiry will take?

Mr. Jenkins

I will bear in mind the points which the hon. Gentleman has mentioned. As for the period of inquiry, I have not attempted to set a fixed term to Lord Plowden and his colleagues. I want them to make a thorough review, a review which will lead to a long period of stability for the industry in the future. But I shall be very disappointed, and Lord Plowden knows and accepts this, if, a year from now, we have not only received the report of the inquiry, but have set to work to carry it out.

Mr. Bessell

Do the terms of reference permit the Committee to examine the future rôle of the Transport Aircraft Requirements Committee, or does this replace that Committee?

Mr. Jenkins

No, Sir. It does not replace it.

Sir Harmar Nicholls

In view of the Importance of the decisions which can flow from the report, may I ask the right hon. Gentleman whether, if the inquiry takes more than six months, he will consider calling for an intimate—[Laughter.]—interim report, so that he can take some action upon it?

Mr. Jenkins

I would hesitate to call for an "intimate" report. I did not fix a term of six months, though I hope that the Committee will not take very much longer. We had better see what approximately will be the time the Committee will need before we consider the question of a possible interim report.

Mr. Hastings

Will the right hon. Gentleman do his best to secure that the Committee pays particular attention to collaboration with European industries? Does he not agree that only in this way, in the long run, will Europe be able to compete with the American aero-space industry?

Mr. Jenkins

The hon. Member will not expect me to prejudge the findings of the Committee. I can only say with greater emphasis, in reply to him, what I said in reply to my hon. Friend the Member for Lichfield and Tamworth (Mr. Snow).