HC Deb 11 May 1966 vol 728 cc375-8
4. Mr. Iremonger

asked the Minister of Aviation what effect the plans for the new Boeing giant aircraft have had on the development programme of the Anglo-French Concord.

Mr. Mulley

The recently announced plans for the Boeing 747 have had no effect upon the Concord development programme. The probable introduction of a very large subsonic jet aircraft in the 1970s is one of the factors which has always been taken into account.

Mr. Iremonger

What are the market prospects for the Concord today, and are they affected at all by the fact that the American market seems to be pre-empted to some extent?

Mr. Mulley

The market for supersonic travel is different from that for large long-haul subsonic jets. There is a later Question about the market prospects of the Concord. Perhaps I could wait till that comes.

24. Mr. Biffen

asked the Minister of Aviation what is the estimated total cost of the Concord project including work up to certificate of airworthiness standards and development flying.

Mr. Mulley

We are still in the process of reviewing the costs of this project with our French partners and I am therefore not yet able to give a revised estimate.

Mr. Biffen

Is the right hon. Gentleman aware that there is widespread expectation that the estimated total costs will be not less than £375 million? Is he sure that there will be sufficient sales of this aircraft to cover that cost?

Mr. Mulley

I am afraid that I am not in a position to confirm or deny speculation which has occurred in the Press. One of the necessary ingredients of working with other countries is that when we are in consultation with them on matters of this sort, I must not seek to jump the gun by public statements of the kind which the hon. Member invites me to make. There will almost certainly be a substantial increase on the former estimates, partly because of rising costs and changes of specification and partly because the new estimates will include the cost of post-certificate of airworthiness work. I cannot give a figure to the House. I am sorry.

Mr. R. Carr

Will the Minister consider a method of giving regular reports to the House about progress in costs and other matters concerning this vast and important technological project?

Mr. Mulley

My hon. Friend the former Parliamentary Secretary gave that assurance in the debate in February. We will, of course, keep the House fully informed, but it would be quite wrong of me to make ex parte statements while we are trying to agree figures—because the costs apply on both sides of the Channel—with my colleagues in Paris.

27. Mr. Edwin Wainwright

asked the Minister of Aviation what was the number of firm orders for the Concord aircraft at the latest available date.

Mr. Mulley

Sixteen aircraft have been reserved for B.O.A.C. and Air France. Options on a further 34 aircraft have been taken out by other airlines.

Mr. Wainwright

Has there been any request from B.E.A.? Will my right hon. Friend do whatever he can to make certain that this aircraft is sold and firm orders are obtained?

Mr. Mulley

I do not think that the Concord would be appropriate for the route pattern of B.E.A., much as I would like to see additional sales. We shall, of course, do all that we can to ensure that the orders which are placed become firm orders in due course.

Mr. R. Carr

Is the Minister now telling the House that the reservations made by B.O.A.C. and Air France are now firm orders, which is what the Question asks?

Mr. Mulley

In the case of B.O.A.C., a memorandum of understanding was signed by the Corporation and my Department in 1962 and, similarly, Air France made a declaration of intent. They are committed to coming to a firm decision when the characteristics of the aircraft are sufficiently advanced.

28. Mr. Edwin Wainwright

asked the Minister of Aviation the total sum allocated, at the latest available date, for the building of the Concord supersonic aircraft.

Mr. Mulley

Total commitments on the British side amount to about £70 million, of which about £32 million has already been spent.

Mr. Wainwright

Does my right hon. Friend realise that articles have appeared in the Press stating that the cost was at least £280 million up to July of last year and is estimated to be £400 million before the end of this year? Will he look into this matter again and ensure that we are not spending money unnecessarily?

Mr. Mulley

As I have already said, I can take no responsibility for speculation in the Press about either the amount already spent or what may be spent in the course of the programme. I have undertaken to give the House the fullest information as soon as the figures can be agreed with our French partners. I do not accept that those figures will have any relation to the figures quoted by my hon. Friend, which, I understood him to indicate, would be the total cost of the programme and not the amount spent to date.

Mr. Burden

Would not the Minister agree that unless we go ahead, either ourselves or in partnership with other countries in producing aircraft of the future, and if we have to buy all our aircraft from America, there will be a terrible strain on our balance of payments?

Mr. Mulley

I hardly think that that arises on this Question. I assure the hon. Member, however, that I accept that we should seek to produce for our own requirements as many aircraft as is technically and economically practicable.

30. Mr. Onslow

asked the Minister of Aviation what American firms have been awarded contracts in the development programme of the Concord project.

Mr. Mulley

No contracts have been placed by my Department with American firms, but the two main contractors, the British Aircraft Corporation and Bristol Siddeley Engines, have placed a number of sub-contracts directly with American firms. The more important of these are with Rohr Corporation, Thompson-Ramo-Wooldridge, Cameron Ironworks and Special Metals Incorporated, and Garrett Airesearch Manufacturing Company.

I understand that the French main contractors have also placed some subcontracts with American firms. I should like to make it clear that it is the joint policy of both countries to avoid placing orders in a third country unless there is no acceptable alternative.

Mr. Onslow

Can the Minister say why the contract for flight test recording systems was also placed with an American firm, Radiation Incorporated, of Florida? Was no British electronics company capable of carrying out this work?

Mr. Mulley

I have no information about that contract. Perhaps the hon. Member will put down a Question.