HL Deb 05 February 1970 vol 307 cc745-6

3.6 p.m.

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 they will make a statement on the B.E.A. proposed airbus order.]

LORD BESWICK

My Lords, B.E.A. are in close touch with Her Majesty's Government on this matter. Alternative types of aircraft are being actively considered. Until they have reached a decision, it would not be appropriate to make a statement.

THE EARL OF KINNOULL

My Lords, I should like to thank the noble Lord for that reply. Would he not agree that the matter is now of some urgency for B.E.A. if they are to acquire a British airbus by 1974?

LORD BESWICK

My Lords, I quite agree with the noble Earl. If B.E.A. are to have this aircraft, and have it ready for operation in the mid-1970s, the decision will have to be made within the next few weeks.

THE EARL OF KINNOULL

My Lords, can the noble Lord advise us what are the latest figures on the "R. and D." costs of the B.A.C. 311 project, and also what proportion of these costs the Government have been asked to contribute?

LORD BESWICK

My Lords, on the airframe, the cost is estimated at £150 million, of which B.A.C. are asking the Government to provide £75 million as a maximum. I understand that, in addition, there are negotiations about a loan.

THE EARL OF KINNOULL

My Lords, can the noble Lord advise us whether that includes the engine costs as well?

LORD BESWICK

No, my Lords, the engine is a separate and additionally complicated matter. The figures do not include the development of whichever engine eventually goes into the machine.

LORD FORBES

My Lords, can the noble Lord say where the airbus would be able to land, other than at Heathrow?

LORD BESWICK

My Lords, if the noble Lord wants me to give him a list, I think I had better circulate it.

EARL JELLICOE

My Lords, is the noble Lord in a position to confirm whether or not the Government believe these estimates for the airframe to be realistic?

LORD BESWICK

My Lords, after some little experience in these matters I hesitate ever to say that an estimated cost of an aircraft is that which is given in the first place. But there is one difference in this particular case; namely, that the British Aircraft Corporation are prepared to say that £75 million would be the maximum.

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