HC Deb 10 April 1972 vol 834 cc839-41
23. Mr. Adley

asked the Secretary of State for Trade and Industry what steps he is taking to facilitate the completion of negotiations between the manufacturers of, and potential purchasers of Concorde.

The Under-Secretary of State for Industrial Development (Mr. Anthony Grant)

The British and French Governments are giving the manufacturers every assistance. The British registered prototype will undertake in June a major overseas demonstration tour covering a number of countries and extending to Australia and New Zealand. My right hon. Friend the Lord Privy Seal will be making an official visit to Australia and will join the tour to arrive there in Concorde. The Royal Air Force will be providing support aircraft for the tour. The full facilities of the British and French diplomatic posts will also be made available to the manufacturers. I am sure that the House will wish this important tour every success.

Mr. Adley

I congratulate my hon. Friend on that excellent news and on the enthusiasm of his reply. Will my hon. Friend accept the thanks of Bristol for the enthusiasm that he is showing? However, will he bear in mind at this delicate stage in the negotiations between the manufacturers and customers that there is a great deal that the Government can do to oil the wheels and to act as a catalyst? I hope that account will be taken of that point.

Mr. Grant

I am grateful for my hon. Friend's remarks. Certainly we hope that this will be a great success. As for the arrangements between the manufacturers and possible customers, we hope that a contract will be settled soon on customary commercial principles. The good offices of my Department are always available to help wherever possible.

Mr. Sheldon

Can the hon. Gentleman say what is the latest estimate of the research and development costs?

Mr. Grant

I cannot answer that question without notice. If the hon. Gentleman cares to table a Question on the subject, we shall do what we can to answer it.

Mr. Edward Taylor

In wishing the mission every success, may I ask my hon. Friend for an approximate idea of how many Concordes require to be sold to ensure that the project breaks even?

Mr. Grant

Not without notice.

Mr. Benn

Is the Minister aware that we on this side of the House join in congratulating the Department on this evidence of vigorous salesmanship? May I ask the hon. Gentleman two questions? Will the B.A.C. work load now be able to be sustained on the basis of the ordering pattern expected? Secondly, what action are the Government taking in direct negotiations with the Japanese and American Governments, who appear still to have in mind putting restrictions on the use of Concorde in those countries?

Mr. Grant

I am grateful for the hon. Gentleman's preliminary remarks. His first point is a matter still under consideration and discussion. As for the Americans and the Japanese, these matters are being discussed. Negotiations with Pan-Am are under way. As for Japan Airlines and others, interest is being shown by those potenial customers. It is encouraging, and discussions are going ahead.

Mr. Dalyell

Have the Government protested strongly to the Japanese about the ban over Japan?

Mr. Grant

There is no question of a protest being made, but we are having discussions with the Japanese in the hope of taking the Concorde there and pursuing the discussions.