PACIFIC AIRMOTIVE CORPORATION (RB211) (Hansard, 18 March 1971)

§ Mr. Dalyell

On a point of order. I beg to ask leave to move the Adjournment of the House under Standing Order No. 9 for the purpose of discussing a specific and urgent matter of public importance, namely, The seizure of five Rolls-Royce RB211 engines, valued at £2 million, held at the factory of the Pacific Airmotive Corporation in California. I regret to take up the time of the House on this matter, but I must do so in view of the reply given by the Leader of the House and the absence of a statement by the Government. The matter is specific because the Whittaker Corporation claims that Rolls-Royce owes it about £335,000 under a contract to supply Rolls-Royce with nickel. It has obtained a court order for legal attachment of the engines, which are physically in the possession of the Pacific Airmotive Corporation, a company which does maintenance work on the engines, after they have arrived from Britain and before they go to the Lockheed Plant at Palmdale.

1667 The Whittaker Corporation has instituted other proceedings against Rolls-Royce in United States States other than California, in Canada, in Japan and in France. These proceedings involve the American distributors of Rolls-Royce cars, they involve S.N.E.C.M.A., the French engine makers, for work on the M45 turbo-fan, and may affect Rolls-Royce engines supplied for the Concorde.

I am sure that every hon. Member will appreciate the importance of this grim development. This action and action against Rolls-Royce customers could have powerful consequences for the new Rolls-Royce company which will inherit the defence contracts, and in the opinion of some lawyers could open the flood gates for legal action against Rolls-Royce products and Rolls-Royce customers all over the world. The consequences for British industry as a whole, once the matter is in the United States courts, of such a multitude of legal wrangles does not bear contemplating. It could involve years of litigation with uncertain results.

I say to those hon. Members desperately concerned about the debate following on steel who may wonder about the urgency of the matter that I would not have raised it now had it not been immediately urgent. I will confine myself to only two of the reasons why it is so urgent.

First, it is urgent that we know before advising the desperately worried subcontractors whether what Whittaker is up to represents a practice recognised in international law in dealing with bankruptcies. Secondly, those hon. Members who feel that the renegotiation of the RB211 contract is the only path for the Government to take, who are worried 1668 that no serious approach has been made by the Government to world airlines, to airlines' bankers or even to our own B.E.A., as potential customers, and must therefore doubt the seriousness of purpose of the Government in renegotiating, feel that the House of Commons should have the opportunity of expressing its general will before it is too late. Monday or Tuesday next may be too late, and that is why I beg leave to move the Adjournment of the House under Standing Order No. 9 now.