HC Deb 01 March 1976 vol 906 cc895-7
5. Mr. Arnold

asked the Secretary of State for Industry what are the Government's plans for the future of the Concorde production line; and if he will make a statement.

The Minister of State, Department of Industry (Mr. Gerald Kaufman)

My right hon. Friend has received a proposal from M. Cavaille, the French Minister of Transport, that there should be a ministerial meeting in Paris on 29th March to discuss the Concorde project. He has replied agreeing that such a meeting would be timely and useful. Ministers will review developments since the last ministerial meeting on 25th March 1975 and consider sales prospects and the future of the programme in the light of the decision by the United States Secretary for Transportation, Mr. Coleman, giving British Airways and Air France access to New York and Washington on a trial basis. I shall lead the British team at this meeting.

Mr. Arnold

I recognise that the commercial viability of Concorde must, regrettably, remain in doubt until this and other problems are solved, but to what extent do the Government regard themselves as committed to an open-ended subsidy to the suppliers of components and spare parts? Many of these suppliers are becoming increasingly worried about the future position.

Mr. Kaufman

The decision about spare parts was announced when my right hon. Friend the Prime Minister met the President of France in 1974.

Mr. Cryer

Does my hon. Friend agree that Concorde is an enormous technological achievement but that it is also an enormous financial and environmental disaster? Is it not time that we got rid of the pretence that we can go on building Concordes to keep people employed and got down to the business of developing alternative methods of producing items that are much more socially useful, so that aircraft workers, who give of their best and are highly trained, can use their experience and expertise in projects that will benefit the nation?

Mr. Kaufman

I do not accept that Concorde is an environmental disaster. Indeed, Mr. Secretary Coleman's judgment of last month showed that its environmental effects are minimal, and these will in any case be tested during the trial period. I agree with my hon. Friend that employment in the aircraft industry will be enhanced by diversification and spin-off. When I met the BAC workers at Filton last month, the management of BAC was able to give examples of spin-off, and in a recent answer to my hon. Friend I was able to give him examples of the kind of technological spin-off that has been gained from the Concorde programme itself.

Mr. Adley

I welcome the announcement of the meeting that the Minister is to have with our French partners. Will the hon. Gentleman give the House an assurance that he has studied the history of pioneering civil aviation developments and is aware that world airlines very often wait until they see one airline operating aircraft satisfactorily and effectively before placing orders? From a manufacturer's point of view this means a slow placing of orders to start with but orders coming in more quickly once the aircraft is off the ground. From a marketing point of view, will the hon. Gentleman assure us that this country will not repeat the mistakes of the past, of winning the manufacturing and design battle but losing orders?

Mr. Speaker

Order. Even for St. David's Day, that is a long question.

Mr. Kaufman

I think that the future of Concorde will be decided by the way in which it is received on the world markets—and the most important test for Concorde will come when it faces the New York route.

Mr. Crawford

Does the hon. Gentleman agree that some of the money going to the flying white elephant of Concorde could better be diverted to Scottish Aviation, which is producing the Jetstream aircraft, which is something that is in demand by the aircraft industry?

Mr. Kaufman

Scottish Aviation will have the inestimable benefit of coming into public ownership later this year.

Mr. Warren

Is the hon. Gentleman prepared to give an assurance that when he meets the French Minister he will put forward a proposal to increase the number of aircraft beyond the 16 at which the limit stands? This is what matters to workers in the aircraft industry.

Mr. Kaufman

I cannot give a commitment of that kind. We must consider this matter in cost-effective terms. We must see what kind of costs there would be for future development of Concorde, and weigh that against the other outgoings to which the Government are committed.