HC Deb 23 February 1970 vol 796 cc794-6
7. Mr. Corfield

asked the Minister of Technology when he will announce his decision upon the request of the British Aircraft Corporation for a Government contribution towards the development of the BAC 3–11

60. Mr. Michael McNair-Wilson

asked the Minister of Technology whether he has now reached a decision on the proposal for a BAC 3–11 aircraft.

75. Mr. Robert Howarth

asked the Minister of Technology what request he has received from the British Aircraft Corporation for financial support for the building of the BAC 3–11; and if he will make a statement on the prospects of sales of this aircraft as compared with those of the A300 European Airbus.

Mr. Benn

The British Aircraft Corporation has requested a Government contribution of 50 per cent. of the estimated launching costs of £150 million, and financial help with production.

Discussions between my staff and the company have not yet been completed. Sales prospects are among the most important aspects being considered.

Mr. Corfield

Will the right hon. Gentleman bear in mind how disastrous delay in decision making can be to the best of aircraft projects? I am sure he will agree that that has been the experience in the past. Will he also bear in mind that, despite record levels of exports, present exports are of items designed many years ago and that there is precious little in the pipeline at the moment?

Mr. Benn

I am very well aware of the dangers of delay. But the party opposite cannot have it both ways. They cannot go around every weekend attacking Government support for industry and then say in the House, when others do not listen, that we should be providing, with. out a full economic analysis, the amount of money involved in this aircraft.

Mr. Howarth

Can my right hon. Friend indicate which version of the Rolls-Royce engine is given for the project at present? In other words, is it an engine which is available without development or one which also needs development support?

Mr. Benn

B.A.C. is considering alternative engine possibilities for the aircraft. The amount of money that would be involved in developing them would depend on the other applications for that type of engine.

Mr. McNair-Wilson

Will the right hon. Gentleman say whether his inability to make a decision quickly on the proposal is to any extent caused by the proposed short-range version of the Boeing 747 jumbo jet and the effect such an aircraft might have on the airbus market?

Mr. Benn

I am not unable to reach a decision on the matter. The proposal reached me from B.A.C. only a short time ago. I have laid down that I will not consider new aircraft proposals unless I am satisfied that the firm is prepared and able to put up a substantial sum of the money—in this case 50 per cent.—and the market is secure for the launching of the aircraft. I absolutely deny that there has been any delay by me. I am, as the House would expect, evaluating a proposal that has come to me from the firms.

Mr. Corfield

Will the Minister bear in mind that I asked for a decision? I did not ask for money.

Mr. Benn

I appreciate that. At the same time, in order to spend the money in a way that accords with what the House as a whole wants, I must have time to evaluate the matter properly.