HL Deb 09 July 1970 vol 311 cc277-8
LORD BESWICK

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 what is the estimated launching cost of the—50A development of the RB.211 engine; what proportion of this is requested by the Rolls Royce company from the Government; what method of repayment of this requested aid is being considered, and when a Government decision about financial aid for this project can be expected.]

THE MINISTER OF STATE, MINISTRY OF TECHNOLOGY (THE EARL OF BESSBOROUGH)

My Lords, the estimated launching cost of this—50A engine is about £60 million. As I told the House earlier this week, the total launching cost for the BAC 311 aircraft equipped with this engine is around £200 million. The proportion sought as launching; aid for the engine, and the method of repayment, are currently under negotiation with Rolls Royce and it would be premature to disclose details. A decision will be made as soon as possible.

LORD BESWICK

My Lords, I am grateful to the noble Earl for clarifying a matter which was left a little vague after what was said on Tuesday. If the figure is of the order of £60 million, may I ask the noble Earl whether he is quite satisfied that it would not be better to invest rather more and go for the—50 engine, which is a larger engine, in the first place and has a far greater potential for development?

THE EARL OF BESSBOROUGH

Yes, my Lords, we have; consulted the Rolls Royce company about this matter. They now regard the—50A engine—which incidentally has now been renamed the—61 engine, just to make it a little simpler—as the best proposition.

LORD BESWICK

My Lords, may I further ask the noble Earl whether the loan arrangements which were made between the Rolls Royce company and the I.R.C. are unaffected by the new Government's policy towards the I.R.C., and can he give an assurance that the future financing structure of Rolls Royce is now satisfactory?

THE EARL OF BESSBOROUGH

My Lords, it is not proposed to interfere with the arrangements already made between Rolls Royce and the I.R.C. In so far as the financial position of Rolls Royce is concerned, they have encountered cash problems, but they have made plans to resolve them.

LORD BYERS

My Lords, what is the reason for the dash in the description?

THE EARL OF BESSBOROUGH

Well, my Lords, it looks more like a hyphen but it is described as a dash.

LORD BYERS

My Lords, what is the significance of it? Why cannot it just be "50A"? Why is it "—50A"?

THE EARL OF BESSBOROUGH

Because, my Lords, the full name of the engine is the RB.211 and there are various engines in the series, and the RB.211–50A is the one which is favoured at the moment.

LORD BYERS

My Lords, if the dash is minus, why not make it a plus?

LORD WYNNE-JONES

My Lords, would not the noble Earl agree that from the questions asked by himself and his colleagues when in Opposition, the Tory Government would support any dashed engine?

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