§ 6. Mr. Wilkinsonasked the Secretary of State for Trade and Industry whether his Department has 1173 participated in discussions between Rolls-Royce and Pratt and Whitney on a new engine to power the Airbus A320; and whether Government funding has been requested by Rolls-Royce to go ahead with this project.
§ Mr. Norman LamontThe Department has kept in close touch with the general progress of these commercial discussions between Rolls-Royce, Pratt and Whitney and their Japanese, German and Italian partners. Rolls-Royce has, however, not yet submitted an application for Government funding towards its share of the project.
§ Mr. WilkinsonMay I make it absolutely clear that, if the Government want to maintain a substantial civil aircraft construction industry in Britain, they must provide launch aid for the A320? With regard to the power plant for that aircraft, is my hon. Friend aware that we are much more likely to get a Rolls-Pratt-Japanese power plant on the A320 if the British also participate in the construction of the airframe?
§ Mr. LamontI agree that the A320 is vital for the future of the civil aircraft industry in Britain. We have always made it clear that we are prepared to give launch aid for viable commercial projects. With regard to the engine, my hon. Friend knows that the proposed entry date for the A320 is 1988. It is unlikely that a Rolls-Royce engine will be available by then. We want there to be a Rolls-Royce engine on the A320 if that can be achieved.
§ Mr. Barry JonesIs the Minister aware that the wings of the current airbus are made by aeroplane makers in my constituency and that that company is deeply worried by the lack of progress on the new airbus? Can he assure us that, notwithstanding the imminence of the large-scale expenditure cuts that are to be made this autumn, the required £400 million will remain safe and be available to British Aerospace? Are the Government giving more priority to the privatisation of British Airways than to the successful launch of the new airbus?
§ Mr. LamontWe want a strong British civil aerospace industry. As the hon. Gentleman has just suggested, by mentioning the £400 million, huge sums of public money are involved in supporting the A320 and the engine for it.
It is right and proper for us to ensure that the projects are commercial. Indeed, we should be failing in our duty if we did not. We do not want political aircraft—we want good commercial propositions.
§ Mr. HaywardIs my hon. Friend aware that anxiety is not confined to the constituency of the hon. Member for Alyn and Deeside (Mr. Jones), but affects the whole country? Is he further aware that the potential British share in the A320 could rise from 20 to 27 per cent.? Does he agree that that could mean that the anxiety would be removed and that there would be an opportunity for more jobs in many constituencies?
§ Mr. LamontI agree with my hon. Friend about our potential share rising from 20 to 27 per cent. In no way do I underestimate the importance of the project to British Aerospace and to jobs. As I have a large British Aerospace factory in my constituency the issue is strongly in my mind.
§ Mr. OrmeDoes the Minister agree that there is growing anxiety about the need to develop the A320, from 1174 the point of view of workers at British Aerospace and Rolls-Royce? Will he confirm, or deny, that the Government are not going ahead because of the proposed privatisation of British Airways?
§ Mr. LamontThat has absolutely nothing to do with it. It does not come into the decision. The only reason why this is taking so long is that we want to be satisfied that the project makes sense. The right hon. Gentleman must be aware that the airline business is in considerable difficulties. Airbus Industrie has quite a few unsold A300s. That poses problems for British Aerospace. This decision must be taken cautiously and it must be the right one.