HC Deb 11 January 1995 vol 252 cc146-7
12. Mr. Barry Jones

To ask the President of the Board of Trade what was the amount of cash earned in Britain by the aerospace industry in 1993; and if he will make a statement.

Mr. Eggar

Figures are not yet available for 1993. In 1992 the aerospace industry's contribution to GDP was £4.3 billion.

Mr. Jones

The figures are magnificent. They prove that British Aerospace plc is making a great contribution to British manufacturing and exports. With that in mind, does the Minister agree that it would be appropriate for the Government to give British Aerospace a vote of confidence by stating that the British Government will purchase the future large aircraft? Does he know that my constituents are experts in wing technology and already make the wing of the Airbus? They would be extremely keen to see the Government place that order. Additionally, perhaps British Aerospace could produce the successor to the aging Nimrod.

Mr. Eggar

I am aware of the important role that aerospace plays in the hon. Gentleman's constituency and the particular interest that he personally has displayed on behalf of his constituents and in support of British Aerospace. On 16 December my right hon. and learned Friend the Secretary of State for Defence made an important announcement with regard to the FLA. He stated clearly that we will rejoin the FLA programme when it is managed commercially by the Airbus consortium. He also stated that we expect to have a requirement of between 40 and 50 FLA. His announcement was warmly welcomed by the aerospace industry and by British Aerospace in particular, as it included the announcement of an order for 25 C130J aircraft—that benefits some 36 United Kingdom companies involved in the production of those aircraft.

With regard to the hon. Gentleman's last point about the maritime aircraft replacement, I can assure him that the DTI will continue to work closely with the Ministry of Defence to make absolutely certain that the commercial and industrial interests are not overlooked in any decision that may be made.

Sir John Cope

My right hon. Friend will be aware that I also welcome the FLA announcement that was made before Christmas. Will he lose no opportunity to emphasise, both within Government and wider, that the tremendous success of Airbus last year in outselling Boeing both reinforces the case that it can deliver on the future large aircraft and emphasises the great importance to the United Kingdom aerospace industry of participation in the project and hence in the future success of Airbus?

Mr. Eggar

It was an extremely important decision for the British and European aerospace industries. Airbus had a very good year last year: for the first time it outsold Boeing, selling 125 aircraft to Boeing's 120. I hope that that considerable achievement will continue into 1995.

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