Aerospace

HC Deb 30 March 2000 vol 347 cc487-9

9. Dr. Doug Naysmith (Bristol, North-West)

What support his Department has given the aerospace industry since May 1997. [115668]

The Secretary of State for Trade and Industry (Mr. Stephen Byers)

I announced on 13 March that the Government would provide launch investment for the A3XX. Since 1997, the Government have made two other launch investment commitments, and we continue to support research and innovation.

Dr. Naysmith

I thank my right hon. Friend for that reply and for the repayable launch aid for the A3XX project. That is of great value to my constituents in Bristol, North-West and to the rest of the UK, where firms in the supply chain will feed into that international collaborative project. What support and help can my right hon. Friend give to firms that want to contribute to that sophisticated high-tech engineering project, and get a share of the action and of the work that will become available?

Mr. Byers

My hon. Friend raises an important point and I was pleased to visit Filton to see the excellent work being done at the plant. The aerospace industry is one in which Britain has a real lead in terms of worldwide development, which is one reason why we were prepared to make the launch investment available. We recognise how important and significant that is—it will safeguard about 62,000 jobs and create about 22,000 new ones. That is real investment and those are real jobs, which is what people want.

Mr. John Wilkinson (Ruislip-Northwood)

While I have every sympathy for the project and hope that it goes well—the A3XX should fill the biggest niche in the market—can the Secretary of State explain why he did not announce the loan aid to the House? It is the biggest provision of loan capital of its kind for years and it has major implications for the industry as a whole. Will he assure the House that he is still in a position to give launch aid to other companies in the aerospace sector, if appropriate, and that other projects, such as the A400M, are still worthy of consideration?

Mr. Byers

I was unable to come to the House because the information was market sensitive and the stock market had to be informed first, which it was at 7.30 am. The reply to the parliamentary question was consequent on that. Those are the formalities that we had to complete and it is wholly appropriate that we did so. The hon. Gentleman raises an important point about a further order that may come to the Airbus consortium. Clearly he will be aware that there are strong arguments about why that project should be supported as well.

Mr. Barry Jones (Alyn and Deeside)

My right hon. Friend deserves great credit for obtaining massive sums for the industry, but does he know that 4,200 Airbus workers in my constituency are incandescent with rage at the refusal of a regional grant? Has he had any discussions with the First Secretary as to how he might disgorge a modest sum to ensure that 1,400 jobs remain in my constituency? He might know that that decision is the most careless in the history of government in Wales—a kick in the teeth. All north Wales is contemptuous of a wretched decision that will do no good for the Assembly in Wales.

Mr. Byers

I understand my right hon. Friend's concerns. Yesterday evening, I met the First Secretary to discuss the situation in the light of his decision to refuse regional selective assistance. He has now agreed to meet the company and the representatives of the work force to try to identify whether there is a different way forward that can give support to the project from the Welsh Assembly, although not in the same way as originally proposed. I think that he now recognises the significant part that that can play and he is more than willing to have discussions with the company to identify a way forward.

Mr. Nick St. Aubyn (Guildford)

At Dunsfold, on the edge of my constituency, nearly 1,000 jobs are being lost as a result of the closure of British Aerospace's plant. Does not that also emphasise the Bank of England's projection that the manufacturing sector is heading for its second downturn in three years? For many people in manufacturing whose jobs are going, the Government's claims to have abolished the cycle of boom and bust have a hollow ring.

Mr. Byers

When the hon. Gentleman has the chance to refresh his memory of the manufacturing figures, he will see that there is no return to the days of boom and bust and that manufacturing has underlying strengths, which are coming to the fore. It is not good for manufacturing when people like him talk manufacturing down. There is much that is good in United Kingdom manufacturing and I am sure that he knows as well as I do that it does not want a return to the Conservative days of boom and bust, when 1 million manufacturing jobs were lost just over 10 years ago.