§ 2.47 p.m.
§ LORD BRAYEMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government the reason why British European Airways are contemplating the purchase of foreign aircraft at a time when Great Britain's foreign exchange situation is in difficulties, and in view of the fact that many workers in the British Aircraft Industry could find themselves unemployed or on short time, when they should be producing the best designed and safest aircraft in the world.]
§ THE MINISTER OF DEFENCE FOR THE ROYAL AIR FORCE (LORD SHACKLETON)My Lords, British European Airways are considering the purchase of aircraft to meet their requirements for additional capacity after 1969. They are still evaluating the various aircraft types, British and American, which are available. My right honourable friend is engaged in discussions with the Corporation and the manufacturers on these questions and will, I have no doubt, be making a statement in due course.
§ VISCOUNT CALDECOTEMy Lords, while declaring an interest in this subject, may I ask the noble Lord who replied whether he would accept that the purchase of American aircraft by B.E.A. would adversely affect our balance of payments, and would also be a most damaging blow to the British, and indeed the whole European, industry?
§ LORD SHACKLETONMy Lords, the noble Viscount has expressed a view which certainly is widely held; but it is for British European Airways, under the Statutes, to take the decision that they think fit, and of course, in practice, to consult the Government. These are matters which my right honourable friend has much in mind.
§ LORD MERRIVALEMy Lords, while hoping that Her Majesty's Government will do everything in their power to see that the air-bus remains a fully European project, may I ask the noble Lord whether his right honourable friend would consider approaching his opposite number in France to see whether it would be possible jointly to develop an aircraft, such as the VC 10, which would meet the growing needs of B.E.A., possibly of Air France and other European airlines, during this intermediate period before the air-bus is introduced?
§ LORD SHACKLETONMy Lords, I fully appreciate the point that the noble Lord is making, and I can assure him that these are matters which my right honourable friend has much in hand. It is also a question of a possibility of whether some interim purchase may be necessary, but I am afraid I cannot to-day anticipate my right honourable friend's views.
§ LORD BRAYEMy Lords, would the noble Lord inform the House whether or not the VC 10 production is to be reduced?
§ LORD SHACKLETONMy Lords, that really is another question. It does not arise out of the original Question.
§ VISCOUNT CALDECOTEMy Lords, may I ask a further supplementary question? Might I remind the noble Lord that, although B.O.A.C. cancelled a substantial part of its order for VC 10 aircraft some time ago, this aircraft is now making very good profits for 947 B.O.A.C. owing to its popularity and therefore its very high load factor compared to the Boeing 707? Will he draw this point to the attention of his right honourable friend who is considering this matter?
§ LORD SHACKLETONMy Lords, that was a statement, not a question.
§ SEVERAL NOBLE LORDS: No!
§ VISCOUNT CALDECOTEI should have thought it was a question, with respect.
§ LORD SHACKLETONThe noble Lord said, may he remind me. I cannot think that this is a serious question intended for answer.
§ VISCOUNT CALDECOTEThe second part of my question was, would the noble Lord draw this to the attention of his right honourable friend?
§ SEVERAL NOBLE LORDS: Answer!
§ LORD SHACKLETONMy Lords, I should not be surprised if my right honourable friend in fact studied very closely everything that the noble Viscount said.