HC Deb 03 December 1998 vol 321 cc1035-7
11. Mr. Michael Jack (Fylde)

What support his Department has given towards strengthening the performance of the European aerospace industry. [61304]

The Minister for Energy and Industry (Mr. John Battle)

Since the general election, the Government have agreed to invest in the United Kingdom aerospace industry through launch investment. We have also strongly encouraged the sector to play a leading role in international restructuring in Europe and we are involved in partnership with the industry in a range of measures aimed at improving its global competitiveness.

Mr. Jack

I am disappointed that the Minister did not mention the civil aviation research and demonstration programme, which has played a leading role in enabling the United Kingdom's aerospace industry to contribute to the strength of the industry in Europe through developments such as the Airbus wing and the RB211. There is disquiet in the industry about whether the Government are considering cancelling the programme and cutting the remaining £20 million of help that is given through that mechanism. Will he give the industry the reassurance that it needs and say that the Government will continue to support technical development through the research programme, and that resources will not be cut?

Mr. Battle

The Government are investing up to £323 million, with a return over the next 17 years, which is a heck of a lot more than the previous Government invested in the industry. We have worked hard to ensure that the Airbus project comes together. Last December, the Prime Minister, with the Germans and the French, drew up a trilateral statement saying that the industry in Europe needs restructuring to face international challenges. We accepted the need for investment; indeed, we are investing more than the previous Government did, as companies acknowledge and welcome rather more than Conservative Members do.

Mr. Christopher Chope (Christchurch)

The regulatory and competition issues in the aerospace industry are so important that the Secretary of State has had four meetings with British Aerospace in the past few weeks—indeed, I am surprised that he is not answering this question. He also in the past few weeks announced major BAe sponsorship of the dome. Does the Minister accept that the only way in which the Secretary of State will ever be seen to be an impartial regulator is if he gives up his sponsorship of the dome?

Mr. Battle

The hon. Gentleman isn't half trying hard. He can try his luck during questions on the dome if he waits seven minutes. [HON. MEMBERS: "Two."' There is no question of my right hon. Friend's integrity and impartiality. If the hon. Gentleman is seriously interested in the aerospace industry, he should be celebrating the fact that Airbus announced at Farnborough this year a record £7 billion in orders, which is more than the Americans ever had—there are orders for 135 aircraft. We have worked hard with the industry to ensure that it will win orders and have a successful future.

Mr. Gordon Prentice (Pendle)

We cannot let the carping and criticism of the right hon. Member for Fylde (Mr. Jack) go unchallenged. Have not companies such as Rolls-Royce in my constituency benefited hugely from the Government through launch aid for the Trent engine? Launch aid has also been given for the development for the Airbus.

We have been reading in the newspapers about the large number of redundancies—48,000—that Boeing is planning to make in the United States. Will my hon. Friend say what the ripple effect will be? What are the implications for the European aerospace industry?

Mr. Battle

My hon. Friend raises a serious issue. The industry is undergoing a mega restructuring and we are watching carefully to see what the ripple effect will be on the supply chain in this country. We need to work hard to ensure restructuring in Europe so that the industry can withstand the changes and work towards a positive future. I sometimes have the impression that Conservative Members talk down manufacturing and the economy at every opportunity. Just because their party is sinking, they do not have to drag the economy down with them.