§ 3.36 p.m.
THE FIRST LORD OF THE ADMIRALTY (EARL JELLICOE)My Lords, with your permission I should like to make a statement about light helicopter requirements for the Armed Forces, on similar lines to that being made by my right honourable friend the Minister of Aviation in another place. This is the statement:
§ "My right honourable friend the Minister of Defence announced in another place in the Defence debate on February 26 that we were considering tenders for a light helicopter for the Army. The choice, as he explained, lay between the Hiller 12E offered by Short Bros. and Harland and the Bell 47G offered by Westland Aircraft Limited. The Westland tender for the Bell was substanially lower than Short's tender for the Hiller. Westlands also have more experience in the making of helicopters. We have accordingly decided to adopt the Bell 47G.
§ "The first 50 machines will be bought from the Agusta Company of Italy who have an established production line. This is so as to meet the Army's most pressing operational needs as quickly as possible. Orders for a further 100 machines will be placed with Westland Aircraft Limited for production in this country. The requirements of the Royal Marine Commandos will similarly be met by Bells."
§ LORD SHEPHERDMy Lords, we are grateful to the Minister for this statement. I think there must be some sour feeling that once again we are having to go overseas to obtain at least the design of our equipment, but we all recognize 861 the acute shortages that have become apparent in the Army in respect of helicopters. I think it is right to favour the choice of the Gcvernment—the Hiller or the Bell are about equal in performance—and, naturally, we shall have to take it from the Minister that the terms and prices of Westland Aircraft Limited are of advantage to the Government.
I think we should also take into account the very serious disappointment that must be felt in Belfast, particularly, by the British company of Shorts who were looking to this contract as a way of obviating the necessity to dismiss many highly skilled men from their factory. The House will have seen the report the other day. This company may have to discharge 50 per cent. of their highly skilled operatives from that factory. We must take it that the Government decision is right, but we hope the Government will find some way of bringing new work to Shorts, who are obviously very much disappointed by the Government's decision.
EARL JELLICOEMy Lords, I am grateful to the noble Lord for his recognition of the urgency of this need. The necessity to meet it quickly became very apparent to my right honourable friend the Minister of Defence when he was in Malaysia during the Christmas Recess. Also, I realise with the noble Lord that this decision will necessarily cause disappointment in Northern Ireland; and, of course, this has been one of the considerations—and a major one—which the Government have had very much in their mind in deciding this difficult and evenly balanced matter.
However, I should like to remind the noble Lord that Short Brothers are getting in one way and another, as a result of Government decisions, a very substantial share of the work available to the aircraft industry at the present time. In the first place, they are getting a share of the work of the VC.10 order for the Royal Air Force; secondly it is proposed that they should get a substantial share in manufacturing the HS.681 tactical transport, about which we talked in our Defence debate yesterday; thirdly, the Government have recently announced their support for the development and initial production of Skyband, which this firm are develop- 862 ing; and, fourthly, the Government have recently made a grant of £10 million to this firm to enable them to carry forward the Belfast and the very important Seacat project. So the position of this firm has been very much in the Government's mind.
§ LORD SHEPHERDBut, my Lords, would the noble Earl not agree that, notwithstanding all the work he has mentioned, the company have announced that over the next 18 months they will dismiss 50 per cent. of their skilled operators?
EARL JELLICOEMy Lords, I have seen this statement. I would merely add—and I fully agree that this is an important consideration—that the number of production workers who would be employed at Shorts or Westlands on this particular order would he very limited, of the order of 100 to 130.
§ LORD RATHCAVANMy Lords, may I re-echo what the noble Lord, Lord Shepherd, has said about the great disappointment which will he felt in Belfast and Northern Ireland by reason of the decision which the noble Earl has just announced? He has given a catalogue of the various efforts made by the Government to help this firm. Nevertheless, as the noble Lord, Lord Shepherd, has pointed out, the fact remains that they believe that within the next few years they will have to cut their labour by about 50 per cent. I hope that the Government will do all they can to help them.
EARL JELLICOEMy Lords, of course, I will take careful note of what my noble friend has said in this respect.
THE EARL OF GOSFORDMy Lords, while sharing the disappointment of the noble Lord, Lord Shepherd, that we cannot produce a helicopter of our own, I am grateful to my noble friend for giving me the answer to a question I posed in the debate last night, that a substantial portion of these helicopters should be made in this country.
EARL JELLICOEMy Lords, I am grateful to my noble friend. I am sorry that I was not in a position to announce our decision in our debate yesterday but, as your Lordships will see, we move very fast in these matters.
§ LORD WALSTONMy Lords, could the noble Earl explain how it is that the Italian Government appear to have moved on this with much greater speed, so that they are able to supply us with 50 of these aircraft before we are able to get production at all?
EARL JELLICOEMy Lords, this is not due to the Italian Government, but to the Italian company concerned who have been producing this particular type of helicopter. To remove any possible misconception in the noble Lord's mind, the British helicopter industry, represented by Westland, is producing at this moment a considerable range of helicopters for the Armed Forces—the Westland 10 and the Wessex I, Wessex II and Wessex V, all of which are coming into the Armed Forces in considerable quantities at the present time.
§ LORD BALFOUR OF INCHRYEMy Lords, can the Minister say whether the motors of the first 50 helicopters which will be built in Italy will be British motors?