HC Deb 26 January 1970 vol 794 cc992-4
20. Mr. Biffen

asked the Minister of Technology what is now the share of development costs expected to be recouped by a levy on the sales of Concorde.

Mr. Benn

We hope to recover some part of the development cost. The precise amount will depend on the level of sales achieved. It is difficult to give an estimate of this because it depends on a number of factors which are necessarily still uncertain.

Mr. Biffen

Surely the House should be give: a more precise answer than that. Has the right hon. Gentleman indicated to the British Aircraft Corporation the target which it should have in mind in the market research which it has conducted and the sales price which it is quoting? Are they expected to aim at recovering for the British taxpayer at least one-third of the very substantial development costs invested in this aircraft?

Mr. Benn

It is a very complicated matter because it depends where one fixes the price, and that in turn determines to some extent the size of the market and the recovery by the Government under the levy arrangement. We are discussing the price. It is not yet settled. The reason it is uncertain is that the market cannot yet be known, although we are moving towards a situation in which the market for the Concorde will become more apparent.

Mr. Hugh Jenkins

Is my right hon. hon. Friend aware that in the publicity which it has issued the British Aircraft Corporation is writing off the cost of the R. and D. althogether? Will he ask the Corporation to correct that misleading publicity?

Mr. Benn

I should need to read the brochure before I assented to that view. The B.A.C. knows very well that there is a levy Arranged to be on the margin in the selling price, and I find it hard to believe that my hon. Friend has not misunderstood the situation.

Sir A. V. Harvey

As one who has consistently supported the Concorde project, may I ask the right hon. Gentleman whether, in view of the very large sums of money involved, he will seriously consider publishing a White Paper informing the House and the country of all the details and of the prospects, good and bad, so that we know where we are and we may perhaps debate the matter later?

Mr. Benn

We have published quite a lot of information and the Committee cross-examined officials and others on the subject and published their comments. I will certainly consider what the hon. and gallant Member suggested. In practice, until we get to the point at which orders are forthcoming, it may not be possible to give firm estimates about the future of the project because in the end it will be determined in the market place.

Mr. Brooks

Have the British and French Governments agreed whether the Concorde shall be sold at the same price irrespective of where it is manufactured? Can my right hon. Friend say whether this depends upon an agreement already reached between the two Governments about the appropriate level at which the levy should be recouped?

Mr. Benn

I should like to look at that question, but my understanding is that the Concorde will be sold at the same price, becausse there is no French Concorde and no British Concorde; each aircraft is constructed in both countries, though some of the aircraft are assembled at Bristol and some in Toulouse.