§ 28. Mr. Frank Allaunasked the Minister of Technology if he will state the total payments for United States military aircraft in the first six months of 1967; how they compare with the same period last year; and what he estimates as the total for the second half of this year.
§ Mr. StonehouseThe total expenditure during the first half of 1967 was £64.6 million of which £13.4 million was in sterling; the estimated total sum for the second half of this year is £68.2 million of which £19.3 million is in sterling. During the first six months of 1966 a total of £26.5 million was spent.
§ Mr. AllaunIn view of the deficit on our balance of payments, does the Minister really think that we can afford to spend money in this way? Is it not a fact that we are to spend over £1,000 million in buying these aircraft?
§ Mr. StonehouseThe question of what aircraft can best suit the needs of the Royal Air Force is a matter for my right hon. Friend the Secretary of State for Defence. We are anxious to meet the requirements of the Ministry of Defence at the lowest possible cost and that is why we decided to buy certain aircraft from the United States.
§ Mr. GoodhewIs not the hon. Gentleman aware that, in spite of the efforts of this Government, there is still enormous capacity in the British Aircraft industry for the design of modern sophisticated aircraft, so why is he reported as suggesting that we will never build an aircraft of our own again, except for small private aircraft?
§ Mr. StonehouseThe hon. Gentleman's question relates to civil aircraft development, which is another matter altogether. The House has debated the subject of military aircraft development time and time again. The fact is that with a small production order for the United Kingdom it is vastly uneconomic to attempt to build a sophisticated aircraft entirely on our own.
§ Mr. Ronald AtkinsWould not the Minister agree that the figures he gave us weaken the Prime Minister's request to Europe that we should resist American encroachment in the technological field?
§ Mr. StonehouseSome European countries also spend vast sums in the United States. What Europe as a whole must now do is to co-ordinate and eventually integrate its aircraft industries and procurement programmes so that we have an opportunity, by intelligent organisation, to meet our requirements on this side of the Atlantic.
§ Mr. David PriceCould the Minister of State explain to the House, in view of the argument that he has put forward, why Sweden is able to produce a very satisfactory aircraft for her own military needs?
§ Mr. StonehouseIn this House I speak for the British aircraft industry procurement programme. It is not for me to comment on what Sweden is doing.