HC Deb 19 October 1966 vol 734 cc190-2
9. Mr. R. Carr

asked the Minister of Aviation whether the Government have yet completed their consideration of the recommendations of the Plowden Committee regarding the future structure and ownership of the airframe industry; and whether he will make a statement.

Mr. Mulley

I am not yet able to announce a decision on these recommendations.

Mr. Carr

Does the Minister realise that it is now 10 months since the Plowden Committee reported? How can he expect the industry to do its part—for example, in raising and committing capital and making plans for the future—when it has no idea what its future structure and ownership will be, or whether mergers and nationalisation will be forced on it? Would he not agree that this uncertainty must not be allowed to continue for another week?

Mr. Mulley

The right hon. Gentleman misjudges the position, because the first part of the recommendations of Plowden, to which he referred, was to the effect that we should have discussions with the firms concerned. This we have done over a long period, and nobody has been suggesting at any time that anything should be forced on the firms. It is because of the views of the firms, and the conflict of views that exists, that it is reasonable for the Government to take time to try to reach the most satisfactory outcome. As for uncertainty in the aircraft world, I have always been told that what it is wanting is certainty about projects much more than about questions of reconstruction.

Mr. Mikardo

Is my right hon. Friend aware that now, more than ever before, it is true that public funds are taking all the risks while the profits are going to private individuals? Does he recall that when the Labour Party was in Opposition some of its leading members, including my right hon. Friend, called this situation severely to question? When does he intend to do something about it?

Mr. Mulley

Views similar to those expressed by my hon. Friend are among the views which the Government are considering.

Mr. Carr

Will the Minister make quite clear that he meant what he said in his supplementary reply to me; to the effect that it is nobody's wish to force on the industry a decision which is unwelcome to it?

Mr. Mulley

I said that I was having discussions with the industry. As I said in my speech in the Plowden debate last February, we are seeking an arrangement acceptable to the firms concerned.