§ Q5. Mr. McMasterasked the Prime Minister what effect the recent changes made in the aircraft industry will have on the restoration of the external and internal balance of the economy.
§ The Prime MinisterThey will provide substantial savings in defence expenditure for the next decade and thus release high-quality productive resources for civil work to the benefit of the balance of payments and the domestic rate of economic growth.
§ Mr. McMasterIs the right hon. Gentleman aware that, because of the cancellations, our aircraft industry has suffered a severe loss of prestige and many of our top aeronautical design staff 1663 have given up in disgust or gone abroad? Is he aware that a high proportion of the increase in taxation which is being raised this year will now have to be spent in the United States to buy American aircraft, and that, because of the cancellations, these will not be paid for by increased exports?
§ The Prime MinisterI am sorry that the hon. Gentleman obviously did not get into the two censure debates on this matter, or we could have had that speech then—and it would have been as inaccurate then as it is now. The threat to the aircraft industry has not been caused by the cancellation of projects which have turned out to be too late to be of service to the Armed Services, and then have escalated too much in cost. The threat to the industry was the over-deployment of that industry on the wrong projects for political reasons.
§ Mr. John HyndCan the Prime Minister tell us whether the French Government are aware of this decline in the confidence in our aircraft industry, when they have just agreed to three more co-operative projects?
§ The Prime MinisterIt would not seem so. On that point, all the warnings of hon. Gentlemen opposite and the attempts of some Front Benchers opposite to stir up trouble with the French about Concord have proved to be completely wrong.
§ Mr. McMasterIn view of the unsatisfactory nature of that reply, I beg to give notice that I will raise the matter on the Adjournment as soon as possible.