HL Deb 05 November 1968 vol 297 cc121-2
THE EARL OF KINNOULL

My 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 whether a further statement can now be made on the European Air-Bus project.]

LORD BESWICK

My Lords, at the Paris meeting on August 2 Ministers expressed the conviction that the overall concept of the aircraft was right, but agreed that a decision on full development should not be taken until the companies concerned had carried out their work further, particularly in the commercial and financial spheres. Revised proposals are due to be submitted to the three Governments by November 10. The latest specification has already been delivered to the national airlines.

THE EARL OF KINNOULL

My Lords, I thank the noble Lord for that reply. If one assumes that a final decision is reached at the end of this month, or towards the end of the year, what, in the opinion of the Government, is the likely date when the A.300 project would go into service with B.E.A.? Can the noble Lord also confirm that the national airlines of all the three countries involved in the project have given firm assurances that they together will purchase the minimum aircraft requirement?

LORD BESWICK

My Lords, the airline service date is still hoped to the summer of 1973. So far as the requirement of the three airlines is concerned, 75 between the three companies, Lufthansa. Air France and B.E.A., is still the target. The final decisions on this, of course, must rest on the final figures as to cost.

THE EARL OF KINNOULL

My Lords, could the noble Lord say whether the research and development costs of the project have increased since last July?

LORD BESWICK

My Lords, early in July, when the noble Earl raised this matter on an Unstarred Question, I said that the construction companies had been asked to go away and see whether they could come back with lower figures. They have now produced some figures this week, which are being studied. It is hoped, of course, that they will be lower, not higher.

THE EARL OF KINNOULL

My Lords, in the event of the A.300 project going forward, could the noble Lord give an indication whether the proposed BAC 3-11 project would be supported by the Government?

LORD BESWICK

My Lords, a decision on the one would not rule out the other. As I think the noble Earl will know, representatives of the British Aircraft Corporation set out last week on a world sales tour, and I am sure we all wish them well.