§ 6. Rev. Martin Smythasked the Secretary of State for Northern Ireland what measures he proposes to fill the current spare capacity for the manufacture of aircraft at Short Bros. Ltd.; what recent guidelines he has issued to the management of Short Bros. in this regard; and if he will make a statement.
§ Dr. BoysonDue to the success of Shorts over the past few years in winning contracts, I am pleased to assure the House, on the advice of Shorts itself, that there is no undue spare capacity for the manufacture of aircraft. I trust that the winning of new contracts will ensure that this happy state continues. I have not issued any recent guidelines to the management of Short Bros. in this regard and I see no reason to make a statement.
§ Rev. Martin SmythWill the Minister join my right hon and hon. Friends and, I am sure, the entire House in congratulating Shorts on its successful efforts in filling spare capacity? I have in mind especially the multi-million dollar order from Boeing, following so recently on the sale of eight Short 360s to China.
§ Dr. BoysonI am delighted to agree with the hon. Gentleman. Shorts announced yesterday, or the day before, that it is making the rudders for the Boeing 737–300. This will provide 100–150 jobs during 1986–89 at the Shorts works.
§ Mr. Peter RobinsonDoes the Minister agree that it would be sad if Shorts showed a capability for winning orders from foreigners throughout the world but could not convince companies in the United Kingdom to buy from it? Will he do whatever he can to persuade the Ministry of Defence to order the Short Tucano?
§ Dr. BoysonI am sure that the sentiments of the hon. Gentleman will be echoed throughout the Province. Everyone involved in the Province hopes that the trainer aircraft contract will be considered seriously and that the contract will go to Shorts.
§ Mr. BellIrrespective of the guidelines which the Minister is issuing or not issuing, will he tell the House what guidelines he proposes to issue to the Shorts management on the statement made by the Chief Secretary to the Treasury on Monday that external borrowing limits will be reduced for nationalised industries from £3.1 billion in 1984–85 to minus £110 million in the financial year 1987–88? Last year the Secretary of State wisely allowed Shorts' EFL to rise from £78 million to £79 million. Will the Minister tell the House that he will use his best endeavours to spare Shorts from the Chief Secretary's axe?
§ Dr. BoysonThere is an established procedure by which I see the chairman of Shorts every three months. I saw him last weekend at an informal meeting. Should any problems occur, I will be contacted by the chairman. I 1158 shall certainly meet him and we shall consider fully any problems that have arisen. The continuance of Shorts, with the success that it has been having over the past few years, has done much to raise confidence throughout the Province.
§ Mr. John BrowneI support my hon. Friend's words of congratulation for Shorts. Will he confirm that in future contracts, especially with the Ministry of Defence, the company bids competitively with other British companies and not on a favoured basis?
§ Dr. BoysonI am sure that the Ministry of Defence will ensure that there are comparable contracts for all, which can be obtained on a competitive basis, with all companies knowing what they are bidding for. Shorts has an advantage in that previously it has had no military aircraft orders from the United Kingdom and there have been years when few civil aircraft have been ordered, because of the recession. This means that the company now has the advantage of being able to offer continuity of labour and production in seeking the trainer contract.