HC Deb 12 July 1976 vol 915 cc17-9
14. Mr. Hoyle

asked the Secretary of State for Trade if he will give reasons for his refusal to seek powers to ensure that foreign aircraft purchased by British companies contain a substantial proportion of British-produced parts.

Mr. Clinton Davis

In the highly competitive international market in which most British air carriers operate, they need to exercise their commercial judgment in purchasing the most suitable type of aircraft for their particular needs.

Mr. Hoyle

Does my hon. Friend consider that to be an inadequate answer, particularly as British Caledonian has ordered two aircraft, at a cost of 70 million dollars, and has options on two more, when it has no idea whether there will be any British components available for them? Is my hon. Friend aware that British Caledonian is only considering the possibility of having British engines, if they are available, in the two planes for which it has options? As there will obviously not be British engines in the first two planes ordered, is it likely that it will be prepared to fit British engines in the further two planes for which at the moment it has options? Does not my hon. Friend think that he should have insisted on a roll-over provision in the contract to ensure the fitting of British engines in all planes?

Mr. Davis

This is not a matter on which am able to insist. If a company seeks to import aircraft, there may be an import duty payable if a comparable aircraft with a substantial British content is available. However, I do not see that I have any locus in the sort of considerations to which my hon. Friend has drawn attention.

Mr. Rost

Is the hon. Gentleman aware that unless he soon authorises a collaborative project there will be no British air freight industry able to produce anything that British industry can buy? How are the talks with the French on the European airbus proceeding? Will this include a Rolls-Royce engine?

Mr. Davis

The hon. Gentleman rightly seizes every opportunity to present his point of view, but he knows that these are matters for the Secretary of State for Industry and not for my Department.

Mr. Walter Johnson

Will my hon. Friend look at this matter again and apply the same strictures to British Caledonian as are applied to British Airways, who are practically forced to buy British aircraft whether they like it or not? Is it not a disgraceful state of affairs that British Caledonian should be purchasing American aircraft?

Mr. Davis

British Airways are certainly not forced to buy British aircraft. My hon. Friend must not misinterpret the situation. British Caledonian had to apply its own commercial judgment on the purchase of these aircraft. It had to consider whether a comparable British aircraft was available, and it advised us that none was available within the time scale it required.

Mr. Tebbit

Would the hon. Gentleman not be doing us all a great kindness if he took his hon. Friend the Member for Nelson and Colne (Mr. Hoyle) to one side after Question Time and explained that, very regrettably, there was no British aircraft available, nor one with a substantial British content, which could do this job? Would he also tell his hon. Friend that it is not possible to draw up a contract involving roll-over provisions for an aircraft that does not exist, that has not been designed, and for which no price has been agreed?

Mr. Davis

I frequently take my hon. Friend the Member for Nelson and Colne (Mr. Hoyle) to one side, and he does the same to me. We frequently have the most constructive discussions together. If the hon. Member for Chingford (Mr. Tebbit) is seeking a tripartite arrangement, we shall have to consider the matter.

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