Multi-Rôle Combat Aircraft

HC Deb 09 July 1969 vol 786 cc1342-4

12. Mr. Dalyell

asked the Minister of Technology if he will give details of the proposed penalties for over-estimates in the pre-production stage of the multi-rôle combat aircraft, designed to lessen the risk of attempts by one nation to gain a larger share of the contracts.

Mr. J. P. W. Mallalieu

I cannot give details of the confidential arrangements made with our partners, but I can assure my hon. Friend that a country overestimating its aircraft requirements in order to gain more than its due share of work in the early stages of the project and subsequently reducing them will suffer a financial penalty.

Mr. Dalyell

In the absence of details, how can we be persuaded that this is a carefully worked out and costed contract?

Mr. Mallalieu

I think it is impossible for my hon. Friend to decide that in the absence of details. We have the details, and we are fully satisfied.

13. Mr. Dalyell

asked the Minister of Technology whether he will seek the agreement of the Governments of Germany, Italy, and Holland to ensure that the Panavia Company, comprising the British Aircraft Corporation, Messerschmitt-Boeklow, Fiat and Fokker, should restrict tenders for the engine of the proposed European multi-rôle combat aircraft to European firms.

Mr. J. P. W. Mallalieu

A competition for this engine is already under way and tenders have been invited from Rolls-Royce and the American firm Pratt and Whitney. As my right hon. Friend the Secretary of State for Defence said on 14th May when he made his statement to the House, we believe that Rolls-Royce will win this competition on merit.—[Vol. 783, c. 1411–17.]

Mr. Dalyell

Would I be right in supposing that part of the purpose of the M.R.C.A. is to sustain a viable European aircraft industry? If by chance Rolls were not to win it, would there be any point in our continuing in the project?

Mr. Mallalieu

In that event, which I consider to be hypothetical, it certainly would not be a European aeroplane.

Mr. Lubbock

Why do not we in Europe impose a penalty on American aeroplane manufacturers who are trying to compete, in Europe, analogous to the penalties which are imposed on British manufacturers trying to compete in the United States? In other words, why do we not insist that there should be a certain percentage cost advantage before we are willing to buy an American engine?

Mr. Mallalieu

That is something for consideration, but I would much prefer to impose the penalty of greater efficiency.

Mr. Brooks

Would my hon. Friend care to ponder the implications of his statement that if the Americans were to win this contract it would no longer be a European aircraft? Surely the whole object of the exercise is to devise a system whereby the European aviation industry will remain viable?

Mr. Mallalieu

It is not the whole object. The object is to get a plane which the air forces of various countries need for the future.

Mr. Corfield

Will the hon. Gentleman bear in mind that the ordering of the avionics for this -aircraft is every bit as important as the ordering of the engines, and that it is very important that these should be European, in which the British avionics industry has a very strong stake?

Mr. Mallalieu

This point is very much in our minds, and is being kept there by the House of Commons.