HC Deb 20 April 1970 vol 800 cc22-3
50. Mr. Sheldon

asked the Minister of Technology what financial assistance he will be giving to Rolls-Royce over the next five years.

Mr. Carmichael

Some payments of launching aid for civil aero-engine projects remain to be made under existing agreements. Further launching aid will be considered for projects of sufficient promise.

Mr. Sheldon

Is my hon. Friend aware that the recent announcement of certain difficulties with the carbon fibre technology is causing some concern? What is important is that any uncertainty be ended as soon as possible. Will my hon. Friend come to a decision as soon as possible on the development of certain new engines?

Mr. Carmichael

This is all tied up together. I assume that my hon. Friend is referring to the RB211-50. The case for the development of any new version of an engine depends on the sales prospects not merely of the engine but of the various aircraft which might take it. This is part of the assessment in which we are now engaged. We hope to be able to make announcements as soon as possible.

Sir A. V. Harvey

Did the Minister read the article by Sir Max Aitken in yesterday's Sunday Express? Has he taken into account Rolls-Royce's very real disadvantage in this very large potential export business compared with its American competitors? Does he agree that it would be a good thing to have an all-party committee to try to get the matter moving in the right direction and to help our export trade?

Mr. Carmichael

On other complicated matters of aero-space we have had all-party discussions and demonstrations, and information has been given. That is a suggestion very well worth considering, and I will put it to my right hon. Friend.

Mr. Robert Howarth

Will my hon. Friend confirm that if Rolls-Royce is to remain one of the major aero-engine companies in the world it is necessary to give it the support for which it is asking for the larger engine—the RB211-50 series?

Mr. Carmichael

The matter is not as simple as that. I have no doubt that Rolls-Royce will be able to continue as one of the major firms, but it depends on whether it can find an outlet for the engines. No matter how good the engines are, there are problems in view of the very large American market and the advantages the Americans have. If Rolls-Royce is to stay in business it must be able to provide engines for the planes coming forward.