HC Deb 20 January 1971 vol 809 cc1047-8
11. Mr. Adley

asked the Minister of Aviation Supply whether Her Majesty's Government was a party to the contract between Rolls-Royce and Lockheed, under which Her Majesty's Government provided loan assistance to Rolls-Royce for the RB2-11 contract.

Mr. Corfield

The Government are providing Rolls-Royce with launching aid to develop the RB211 for the Lockheed Tristar, but they were not a party to the contract between Rolls-Royce and Lockheed.

Mr. Adley

If the Government were not a party to the contract, is it not extraordinary that £47 million of public funds were made available for the completion of the contract?

Mr. Corfield

I am sure that my hon. Friend will appreciate that the Government launching aid policy, which has been followed by successive Governments, has always kept the Government out of the contractual relationship between the engine manufacturer and the airframe manufacturer.

Mr. Palmer

Is Rolls-Royce now applying for further money? If so, is any upper limit to be fixed?

Mr. Corfield

The only information I have about that is what I read in the newspapers, and no one has told me anything of a different nature.

Mr. Onslow

Did the Government know the terms of the contract before agreeing to lend the company £47 million?

Mr. Corfield

I think that the Government must have known. Although it was long before my time, I think that that is so.