§ 3.41 p.m.
§ THE EARL OF KINNOULLMy 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 in view of the extensive sales orders of the Rolls Royce RB 211 engine in America and the current report on the lack of support for the European airbus, whether they will reconsider now their decision to abandon the BAC 2–11 project.]
§ LORD BESWICKMy Lords, the Government decided that they could not support the BAC 2–11 project because they were not satisfied that the market demand would justify the necessary R and D expenditure. The decision on the future of the air-bus has yet to be taken.
§ THE EARL OF KINNOULLMy Lords, I thank the noble Lord for his reply. Could he confirm or deny the 5 discouraging reports—and I am sure we have all read about them in the Press—about the lack of support by the airline operators for the European air-bus concept, and could he say how soon a final decision as to the go-ahead for this project will be made?
§ LORD BESWICKMy Lords, the position remains that before a decision is taken to proceed with this project, there must be a commitment from the three sponsoring countries for a minimum order. I have seen this speculation in the Press, but the decision as to whether or not the project can go ahead will be taken this month by the three member Governments, Britain, France, and Germany, and of course they will be in full possession of all the information that the market researchers have been able to gather.
§ THE EARL OF KINNOULLMy Lords, if Rolls Royce had won their engine order with the Americans before a decision on the BAC 2–11 had been taken, could the noble Lord say what difference it would have made to the launching cost, of the BAC 2–11 project?
§ LORD BESWICKMy Lords, I agree that it is a that the RB 211 was not sold to Lockheed before a decision was taken on the BAC 2–11. But I understand that there will still be a cost for the development of the RB 211 for any new aircraft, the BAC 2–11 or another, something of the order of £9 or £10 million.
§ THE EARL OF KINNOULLMy Lords, finally, could the noble Lord say whether he feels that the Government should now encourage the British aircraft industry to design a British aircraft suitable for this magnificent RB 211 engine?
§ LORD BESWICKMy Lords, I am sure that we should all like to see this new British engine exploited in some British aircraft. If any new proposal were put forward by the manufacturers, it would certainly be most carefully considered.
§ LORD TREFGARNEMy Lords, is the noble Lord aware that there is widespread concern in the European airline 6 industry over the increase in costs announced in another place recently in the European air-bus project, coupled with serious doubts about the basic concept of the European air-bus. Would he therefore see whether the Government could reassess the BAC 2–11 project in the light of producing this perhaps more viable alternative?
§ LORD BESWICKMy Lords, I think my answer to the last question probably answers that which has just been put by the noble Lord. There are doubts, and there are always doubts about any aircraft project. Whether they are sufficient to rule out proceeding with the A 300 is a matter which the three member Governments will decide later this month. I repeat that I should like to feel that the RB 211 would be utilised in some British projects.