HC Deb 10 June 1974 vol 874 cc1219-20
22. Mr. Michael McNair-Wilson

asked the Secretary of State for Trade what further discussions he has had with British Airways about operating Concorde.

Mr. Shore

I discussed British Airways' Concorde appraisal with representatives of British Airways and of the British Aircraft Corporation on 17th May. Copies of the appraisal have since been made available to the House.

Mr. McNair-Wilson

Is the right hon. Gentleman aware of the concern arising from the fact that the British Airways figures seem to suggest that that airline is firmly convinced that it cannot make a profit from Concorde, whereas Mr. Freddie Laker seems equally convinced that he can? In view of this disagreement between the two operators, will the right hon. Gentleman give either an assurance that no subsidy will be paid to British Airways without an impartial inquiry into its figures or a promise that if the aircraft goes into service with British Airways no subsidy will be paid until it has been in service for at least a year?

Mr. Shore

The hon. Gentleman misunderstands the position. We have not yet reached the stage when we need to consider whether assistance is needed for British Airways to fly Concorde—nor do I accept the hon. Gentleman's statement, which preceeded his supplementary question, that British Airways is being wholly pessimistic about the prospects of Concorde. British Airways had to put forward a range of estimates and, naturally, put forward that central esti- mate which it felt obliged to put forward as a result of its present studies.

Mr. Heseltine

Does not the Minister understand that the only reason British Airways published those figures was in reply to the statement made by his colleague the Secretary of State for Industry, largely without consultation? Is not the effect of forcing British Airways to make that statement damaging to the prospects for Concorde wherever salesmen of the British Aircraft Corporation appear?

Mr. Shore

I do not think so. That is neither what we intend nor how British Airways views the matter. The Government, in the whole matter of Concorde, have started on a policy of encouraging as much informed public discussion as possible, and as part of that discussion it was incumbent upon the Government to ask British Airways to put forward its best estimate of the financial factors——

Mr. Heseltine

The worst estimate.

Mr. Shore

If the right hon. Gentleman believes that we asked British Airways to put forward its worst estimate I can only say that his head should be examined.