§ 5. Mr. Tebbitasked the Secretary of State for Trade and Industry what plans he has for further discussions with European Aerospace Ministers on the future of the aerospace industries in Europe.
§ Mr. Michael HeseltineAs my hon. Friend the Under-Secretary of State told my hon. Friend the Member for Bristol, North-East (Mr. Adley) on 5th February, we shall continue to take every opportunity to discuss with other European Governments the steps needed to ensure a strong European aerospace industry.—[Vol. 850, c. 24–5.]
§ Mr. TebbitIs my hon. Friend aware that although many of us feel that a strong European industry is essential for the British industry to survive at its full strength and potential, as time goes on many more of us become worried about whether, when the European industry is formed, we in this country will still have the capacity for major design leadership?
§ Mr. HeseltineI fully understand the question put to me by my hon. Friend. Obviously that must be a preoccupation of the Government as well.
§ Mr. BishopIs the hon. Gentleman aware that there is concern about the Government's thinking, if any, about the future of the British aerospace industry with regard to rationalisation and the numbers likely to be employed in the industry? Is it the Government's plan to review the number of companies and the number of employees? Finally, does the hon. Gentleman want a British aerospace industry at all? The view of many people is that there are no indications that way.
§ Mr. HeseltineI am sure that on reflection the hon. Gentleman will take more account of the fact that last year we achieved record exports in the British aerospace industry. It does not look like an industry which is doubting the will of the Government to keep it in existence. Of course the Government have very real concern for the British aerospace industry. The question of mergers is in the first instance a matter for the firms themselves.
§ Mr. SkeetNevertheless, the establishment of multi-national institutions in Europe would be more valuable than the ad hoc participation that has occurred in the past.
§ Mr. HeseltineI very much take that view, but other Governments have also to be persuaded.
§ Mr. BennA moment ago the hon. Gentleman said that it was a matter for the firms. Now he says that other Governments have to be persuaded. Will he make clear to the House and the industry whether it is his intention as the responsible Minister to push firms into international companies across frontiers? What effect would that be likely to have on employment and prospects for the British aerospace industry?
§ Mr. HeseltineI cannot give any figures of the sort that the right hon. Gentleman requests because no plans exist, so calculations could not conceivably be made. It is equally true to say that if I saw any way in which meaningful conversations with the European industry could take place that could lead to the establishment of a multi-national company in the aerospace industry in Europe, I should be happy to take part in that discussion.