HC Deb 02 August 1966 vol 733 cc246-8
Q3. Mr. Marten

asked the Prime Minister if he will make a statement on his meeting with representatives of the Society of British Aerospace Companies.

The Prime Minister

I met representatives of the Society of British Aerospace Companies on 30th June and had a most helpful exchange of views about the reallocation of responsibilities of the Ministry of Aviation.

Mr. Marten

As the Government are proposing to go into partnership with the aircraft industry, was it not rather curious that before deciding to abolish the Ministry of Aviation the Government did not have full, frank and purposive discussions with the aircraft industry? Arising out of that, can the Prime Minister say whether there is any decision about the procurement of military aircraft and responsibility for it?

The Prime Minister

I have explained on a number of occasions the very difficult and finely-balanced considerations which led to the decision about Ministerial responsibility for the aircraft industry and for shipping, which, I said, was a parallel case. The society was very concerned about the issue raised by the hon. Gentleman, namely, the responsibility for military procurement. At my suggestion it was arranged that there should be continuing talks with the representatives of the society about the work, which has been going on since then and about which the House knows, about the dividing line between procurement and the technological side of the aircraft industry.

Mr. R. Carr

Will the right hon. Gentleman express some regret that there was no consultation with the industry before such vital decisions were taken, and will he assure the House that there will be full consultations with the industry about the remaining decisions?

The Prime Minister

I have already explained the circumstances in which the decisions were taken. I do not think that there is any occasion for expressing regret. I have already said in answer to the hon. Member for Banbury (Mr. Marten) that on the vital decisions affecting the industry and the demarcation line between military procurement and civil research and other subjects the industry will be fully consulted. It has given the greatest possible help to the working party which has been dealing with the problem of settling the demarcation line.

Sir Ian Orr-Ewing

Is the right hon. Gentleman aware that not only is the aircraft industry not receiving any orders from the Government, but the Government are being extremely dilatory in paying outstanding compensation and other debts which they owe the industry? Is he aware that this makes it extremely difficult for the industry to carry on with such work as it now has on hand?

The Prime Minister

The hon. Gentleman will know that the aircraft industry has been receiving very considerable orders, despite the fact that we had to cut down because of some of the wasteful orders placed in the past. So far as compensation on cancellation is concerned, it is my information that very considerable sums have been paid, but if the hon. Gentleman has the interests of any particular company in mind and will give me the information, I will look into it.

Mr. Hastings

Would the Prime Minister not agree that it is those responsibilities which are passing to the Board of Trade which are causing such concern?

The Prime Minister

I could not quite hear the hon. Gentleman. He was referring to the responsibilities for aviation going to the Board of Trade?

Mr. Hastings

The responsibilities of the Ministry of Aviation passing to the Board of Trade.

The Prime Minister

That does not affect the aircraft industry. This affects the operation of the civil airlines and the management of airports. I have explained to the House that it is exactly parallel with shipping. It is right that shipping and aviation, together with other overseas interests of a similar kind, should be in the Board of Trade.