Aerospace Industry (Hansard, 19 February 1979)

§ 13. Mr. Adley
asked the Secretary of State for Industry what recent discussions he has had concerning the future of the British aerospace industry; and if he will make a statement.

§ Mr. Kaufman
I regularly meet the chairmen of the publicly owned aerospace corporations, and others, to discuss a wide range of matters affecting the future of the industry.

§ Mr. Adley
As regards sales of military aircraft by British Aerospace, including the Harrier, will the Minister of State confirm that he is not unduly influenced by the Morning Star, by the Kremlin or by the Tribune group, all of which are singing the same song on this matter, but that his main concern is the strategic interest of NATO combined with the commercial interests of both British Aerospace and the British taxpayer? Will he take it from me that the shop stewards at BAC Hurn fully support Her Majesty's Government in a determination to proceed with the sale of Harriers to China?

§ Mr. Kaufman
I do not know what that was all about. It was the usual load of vituperative pseudo-rhetoric which we get from the hon. Gentleman, when I was in fact hoping that we should have from him a good question on Concorde, which I was all prepared to answer. On the question of the sales of Harrier, I have nothing to add to the statement made in the House last month by my right hon. Friend the Prime Minister.

§ Mr. Frank Allaun
That is not good enough. After the invasion of Vietnam by China this weekend, will my right hon. Friend ask the Secretary of State to exclude from his negotiations in Peking the supply of military goods to China and confine himself, as America and Germany have done, to non-military goods? Would it not be shameful if at this moment, when the United Nations are asking for restraint, we heightened the war danger not only in the Far East but perhaps in the whole world by acting as merchants of death?

§ Mr. Kaufman
I recognise the strong and sincere feelings which have motivated my hon. Friend on all these matters over 20 many years. He has a consistent record of opposition to sales of military weapons, and the whole House respects him for that. Nevertheless, I stand on the statement on this issue made by my right hon. Friend the Prime Minister.

§ Mr. Emery
Does the Minister realise, however, that there is considerable concern and that there is a developing pressure group from certain areas—they may be described as the extreme Left—which are trying hard to suggest that the Harrier order should not be proceeded with? Will the right hon. Gentleman take well on board that it is my belief that the majority of the British people would wish to see this magnificent British aircraft able to be sold overseas, and that an order from and delivered to the Chinese could well stimulate a great deal more orders from overseas countries throughout the world?

§ Mr. Kaufman
I know that the hon. Gentleman does not join many of his hon. Friends in the cheap way in which some of them approach these matters, and he is endeavouring to speak constructively. I know also that he will accept that some label of "extreme Left" or other is not to be attached to people who for sincere conscientious reasons have long opposed sales of military weapons to any country for any reason. Nevertheless, this Government have stated a policy on this issue, and that is their policy.

§ Mr. Heffer
Although I agree with what was said by my hon. Friend the Member for Salford, East (Mr. Allaun), may I ask my right hon. Friend another question? What discussions has he had with Lucas Aerospace in relation to Merseyside, and can he say what will happen on Merseyside, especially in view of the possible forthcoming closure of the Victoria works?

§ Mr. Kaufman
Last Wednesday I took the chair at a tripartite meeting of representatives of the Government, unions—including members of the combine cooperative committee—and management of Lucas Aerospace at which we discussed the future development plans of Lucas Aerospace. A most important agreement was reached which, among other things, included a decision that Lucas Aerospace would proceed immediately with the construction of new 21 factories at Huyton and Bradford, that the new factory at Huyton would employ 800 instead of 500 as originally proposed, that there would be no compulsory redundancies at Bradford and no compulsory redundancies at Liverpool in the next two years, that a group would be set up to consider the possible development of some of the alternative products proposed by the combine co-operative, and that if this group came up with positive recommendations Lucas Industries would use its best endeavours to manufacture those products on Merseyside so as to create or preserve jobs there. I hope that the House will agree that this is a useful and promising outcome of these meetings, and I shall arrange to publish in the Official Report the agreement which was reached after the meeting last Wednesday.

§ Mr. Warren
Is the right hon. Gentleman aware that British Aerospace has announced that more than half the contracts for the 146 airliner project are being let to foreign companies? Is it the wish of his Department that taxpayers' money should be used to keep foreign workers employed or to keep our workers employed?

§ Mr. Kaufman
When I announced last summer that the 146 would go ahead—of course, it went ahead only because of nationalisation—I said that British Aerospace would look to the possibility of collaboration with overseas partners in the manufacture of this aircraft. British Aerospace has been successful in finding partners, and, of course, that assists the project. If it assists the project, it therefore assists in providing jobs, including for example, jobs at Filton and Hatfield.

§ Mr. Frank Allaun
On a point of order, Mr. Speaker. I do not propose to seek to raise this matter on the Adjournment but, in view of the unsatisfactory nature of the answer, I am sorry to say, I propose to raise it under Standing Order No. 9.

§ Mr. Speaker
I do not want the hon. Gentleman to set a precedent so that everyone will be rising to give me notice of applications under Standing Order No. 9. However, I understand the message which has been conveyed.