HC Deb 16 April 1973 vol 855 cc22-3
18. Mr. Sheldon

asked the Secretary of State for Trade and Industry if he will now make a further statement on Concorde.

38. Mr. Michael McNair-Wilson

asked the Secretary of State for Trade and Industry whether he will make a statement on the present state of the Concorde programme.

Mr. Michael Heseltine

We and the French Government are giving the manufacturers our full support in their sales negotiations. I hope to discuss shortly the position with my colleague in the new French Government.

Mr. Sheldon

Is it not clear that to an increasing extent we are producing many parts of this aircraft in excess of the firm orders which have been given for it? If that is so, we shall soon be producing Concordes for stock. Is not that very wrong? What is the Minister's latest estimate for development costs, and what proportion of those costs does he expect to recover?

Mr. Heseltine

We have always been in the position of producing Concordes in advance of firm orders. As I announced to the House in May 1972, the latest estimated cost of development is £970 million. That is the subject of a review, and as soon as I am able to make a further statement to the House I shall do so.

Mr. Michael McNair-Wilson

Has my hon. Friend had further discussions with the American aviation agencies about the noise limitations which may be imposed on Concorde's landing at American airports?

Mr. Heseltine

Not since my return from the United States. My hon. Friend will remember that it is our view that the noise of Concorde, when it enters service, will be of the same level as that of existing conventional jets, and it should therefore pose no new problems when it arrives at American airports.

Mr. Cronin

There is plainly much in what my hon. Friend the Member for Ashton-under-Lyne (Mr. Sheldon) has said, but when Concorde is operating for Air France and BOAC is there not a likelihood that competitive pressure will bring an increase in orders from other air companies?

Mr. Heseltine

I am sure that the competitive pressure of this remarkably attractive form of transportation will bring about the situation to which the hon. Gentleman has referred.

Mr. McLaren

Will my hon. Friend say how near we are to the day when it will be desirable to authorise a start on the parts for a few more Concordes so as to ensure continuity of production by BAC and its subcontractors?

Mr. Heseltine

There is no immediate pressure to take that decision.

Mr. Benn

While welcoming the Minister's reaffirmation that he is supporting the sales campaign for this aircraft, may I ask whether he can give the House the assurance that the assembly line will be retained at Bristol?

Mr. Heseltine

No proposals have been put to me to change the present disposition of the two assembly lines. Obviously, if the manufacturers put any proposals to me I must consider them, but no such proposals have been put.