HC Deb 22 March 1982 vol 20 cc681-2
20. Mr. Peter Lloyd

asked the Secretary of State for Industry what information he has on partnership ventures recently undertaken in the telecommunications industry.

Mr. Kenneth Baker

I welcome partnership initiatives taken in response to the new opportunities afforded by our policy of telecommunications liberalisation, for example, Project Mercury. I particularly welcome partnerships between the public and private sectors, of which a good recent example is United Satellites Limited, which involves British Aerospace, GEC-Marconi and British Telecom.

Mr. Lloyd

Does my hon. Friend agree that British Telecom could become an even more commercially minded and effective leader in joint ventures with the private sector if it were open to private investors? In answer to a question from the hon. Member for Thornaby (Mr. Wrigglesworth) it was said that this was a long-term plan. Can my hon. Friend make it a very much quicker one?

Mr. Baker

We are examining the possible ways of financing BT's substantial investment programme, which is due to rise to about £3 billion per annum in 1984–85, which will be the largest investment programme in the country. We are not ruling out partnership between public and private sector funds.

Mr. Michael Marshall

Does my hon. Friend agree that in examining partnerships in the telecommunications industry it is important to take into account the partnership between British Aerospace and GEC-Marconi on the defence satellite in supplementing this country's space activities? In that regard, are not he and his hon. Friend the Under-Secretary of State for Defence Procurement, who I see sitting on the Front Bench, playing a blinder?

Mr. Baker

Yes. The co-operation between our two largest space companies, GEC-Marconi and British Aerospace, for the defence satellite, is very good. I have already said that there is a strong space industry in Britain. British Aerospace is building about nine satellites, including the large satellite L-Sat, which will be launched in 1986. We hope to have a significant part of the world market for satellites by the 1990s.