Airbus Industrie

HC Deb 07 December 1988 vol 143 cc306-8

12. Mr. David Evans

To ask the Chancellor of the Duchy of Lancaster when he last met representatives of Airbus Industrie.

Mr. Atkins

My right hon. and noble Friend the Secretary of State for Trade and Industry and I last met representatives of Airbus Industrie at a meeting of Airbus Ministers from the four partner countries held on 17 November 1988.

Mr. Evans

Is my hon. Friend aware that the president of Airbus Industrie is German and that the managing director is French? In an important meeting on 15 December, will he support the view that the financial director should be a British subject, in the interests of British Aerospace and the British people?

Mr. Atkins

Yes, Sir.

Mr. Hoyle

Has the Minister discussed with Airbus Industrie the disappointment over the fact that British Airways went to Boeing in America rather than to Europe and that it is now the only major national carrier not using the European Airbus to any great extent? That disappointment is felt even when taking into account the Airbus orders that it inherited from British Caledonian.

Mr. Atkins

I understand the hon. Gentleman's point. However, Rolls-Royce engines will be used on a variety of—

Mr. Hoyle

Not on 737s.

Mr. Atkins

No, not on 737s, but on a variety of the aircraft that have been purchased. In an industry that is as collaborative as the aerospace industry, a wide variety of British companies are already involved in a wide variety of Boeing aircraft, not least, for example, Shorts and Rolls-Royce. The hon. Gentleman's point is well taken.

Mr. Bill Walker

When my hon. Friend next meets the members of Airbus Industrie, will he draw to their attention the way in which Britain has brought about financial discipline in the market place by requiring companies to show clearly how they operate and how they are funded? That is important because Airbus Industrie, which is an essential part of European aircraft collaboration, must be seen in the United Kingdom and elsewhere as a company whose accounts can be noted and accounted for.

Mr. Atkins

My hon. Friend is correct in his assessment. Obviously, those in the industry know how successful the recent versions of the Airbus have been, particularly in competition with American manufacturers. It is all the more important, therefore, that we ensure that administratively and financially the company has a secure long-term future to offer customers and employees.

Mr. Stott

Further to the point raised by my hon. Friend the Member for Warrington, North (Mr. Hoyle), given the fact that the British taxpayer has paid millions of pounds in launch-aid for the Airbus A320, that many thousands of jobs in British Aerospace depend on future sales of that aircraft, and that British Aerospace has decided to buy the Boeing 737 400 series, which does not have the Rolls-Royce engine, can the Minister quantify what that purchase will mean to the balance of payments?

Mr. Atkins

The hon. Gentleman will not be surprised to know that I cannot do that off the top of my head. However, I emphasise what I said earlier. The aerospace industry is a collaborative industry involving a wide variety of manufacturers, in a wide variety of aspects, whether they be airframe, engines or avionics. In those circumstances, although I was as disappointed as many other people that British Airways felt that it could not buy the A320, the reason behind its decision was that it wanted a range that was not available by the purchase of the A320. That is a commercial matter for a company which is already involved with a variety of British companies in other aspects of Boeing aircraft, not least Rolls-Royce engines on the rest of its fleet.

Mr. Grylls

Further to the good point made by my hon. Friend the Member for Tayside, North (Mr. Walker) about the organisation of Airbus, following the report by Sir Jeffrey Sterling, when will Airbus Industrie be turned into a company that actually has a balance—that would be a step forward—and when will it have a finance director? I understand that it does not have one at present.

Mr. Atkins

In the context of Airbus ministerial meetings, we are working hard to ensure that we can achieve the ideal to which my hon. Friends have drawn the attention of the House. 1 hope that we can achieve it sooner rather than later.