§ 26. Mr. McMasterasked the President of the Board of Trade when he expects to make a decision regarding the application of British European Airways to purchase a BAC211 aircraft.
§ 29. Mr. Goodhewasked the President of the Board of Trade what decision he haw now taken regarding the application of British European Airways to purchase BAC211 aircraft.
§ Mr. JayI expect to reach a decision within a few weeks.
The decision will turn not only on what will be the most economic fleet for B.E.A., on which I have only recently had a full study from the Corporation, but on practical and financial questions relating to the development and production of the chosen aircraft which I am discussing with my right hon. Friend the Minister of Technology.
§ Mr. McMasterIs the right hon. Gentleman aware that irrespective of the decision on the airbus, it would be a tremendous advantage to British industry and technology to have an aircraft which is both built in Britain and equipped with a new engine designed and built in Britain? Will he, therefore, expedite this matter?
§ Mr. JayYes, Sir, I entirely agree with the hon. Gentleman's objective. But there are some intricate technical and financial questions involved in the relation of the engine chosen for the airbus and the engine for other types of aircraft. That is why we are now intensively investigating the matter in consultation with B.E.A., Rolls-Royce and the other parties concerned.
§ Mr. GoodhewIs it not a fact that this aircraft is to have a particularly silent engine? Would it not, therefore, have a great export market?
§ Mr. JayAmong many other factors, the relative quietness of an engine is certainly an asset nowadays in any prospective aircraft.
§ Mr. Robert HowarthWould my right hon. Friend, however, take great care, in that if he agrees to the finding of, I think it is, £100 million for the development of the BAC211, this would not only seem to rule out the prospect of a European airbus but might possibly draw us into the sort of error we have seen so many times before, where B.E.A. requirements ruled out the prospect of export sales?
§ Mr. JayThe matter is not quite so simple as this because the question of whether or not it rules out the airbus depends on which engine is chosen for both. It is because this is rather intricate that we are taking a little time to investigate it thoroughly.
§ Mr. R. CarrWhile we sympathise with the right hon. Gentleman over the complexities of this decision and its importance, can he assure us that there will be very thorough market surveys of the need of world markets for aircraft of different sizes and of the various times at which those demands are likely to arise?
§ Mr. JayYes, Sir. We are certainly doing this work, which is extremely important, in consultation both with the authorities concerned in other countries and with the producers of both airframes and engines in the United Kingdom.
30. Mr. R. Canasked the President of the Board of Trade whether it remains the policy of Her Majesty's Government that British European Airways should be limited in their re-equipment programme 555 to the purchase of British aircraft; and whether he will make a statement.
§ Mr. JayI have nothing to add to the reply I gave to my hon. Friend the Member for Bolton, East (Mr. Robert Howarth) on 11th May.—[Vol. 746, c. 270.]
§ Mr. CarrCan the right hon. Gentleman assure us that he is very much aware of the great urgency of the position? When he spoke a few minutes ago about reaching a decision on the BAC211 within a few weeks does that also mean that he will be reaching a decision about the B.E.A. re-equipment programme in a few weeks?
§ Mr. JayWe hope to reach a decision very soon on the whole remain instalment of B.E.A. re-equipment. As the right hon. Gentleman knows, we have already approved a major purchase of BAC111s.
§ Sir G. NabarroWill the right hon. Gentleman bear in mind during the final stages of his consideration of this vital problem that there will be very wide resentment throughout British industry, in aeronautics and engineering generally, if he decides to buy foreign aircraft for a British national European airline?
§ Sir G. NabarroI am not gallant.