HC Deb 05 June 1997 vol 295 cc540-1
10. Mr. Pike

To ask the President of the Board of Trade what discussions her Department has held with the United Kingdom aerospace industry on the impact of the merger of Boeing and McDonnell Douglas. [664]

Mr. Battle

The Department is in constant dialogue with the United Kingdom aerospace industry on a range of issues, including future competitive challenges. It is important that the sector should be in a strong position to meet those challenges over the coming months and years.

Mr. Pike

I congratulate my hon. Friend on his new appointment, and wish him and his team well for the years ahead.

As my hon. Friend knows, the aerospace industry is crucial to the UK economy, particularly in Lancashire, and the merger will have a tremendous effect on it, both in the UK and in Europe. Will my hon. Friend take all possible steps to ensure that the Government work with the industry to make certain that it is not squeezed, and that we do not lose jobs as a result of the merger that is taking place in the United States?

Mr. Battle

Yes. The UK aerospace industry is the third largest in the western world, employing more than 110,000 people. Exports alone are worth about £7 billion. The industry is the second largest source of research and development, and there are spin-offs into other industries.

It is not usual for Ministers to comment on the details of mergers, but I can tell my hon. Friend that this is a matter for the European Commission and the United States competition authorities. The Government are closely following the Commission's investigation of the proposed merger. The parties are providing the Commission with further information, so it is not yet time to take a firm UK view; but I emphasise that the Government are keen to support the aerospace industry and enable it to develop, not least through support for research and development, which we hope will strengthen the sector and secure even more jobs.

Sir Peter Emery

Will the Minister implore the President of the Board of Trade to pay particular attention to Britain's role in the space industry? We shall be able to have a great deal of new business if that is done properly. Will the Minister ensure that our commitment to the European Space Agency is properly fulfilled?

Mr. Battle

Again, the answer is yes. We intend to do even better than the last Government in that respect.