HL Deb 26 November 1974 vol 354 cc1235-7

2.48 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 what up to date studies have been made by the Department of Trade and Industry on the viability of the HS 146 project, and what importance they attach to the continuation of the project in the wider context of the British aircraft industry.

THE MINISTER OF STATE, DEPARTMENT OF INDUSTRY (LORD BESWICK)

My Lords, the Department of Industry, together with other interested Departments, is examining all aspects of the HS 146 project, including such wider issues as the role of the project in the British aircraft industry as a whole. Until this work is completed I cannot say what the Government's view might be, but one of the main issues it will take into account when reaching a decision will be the effect cancellation might have on the future capability of our industry.

THE EARL OF KINNOULL

My Lords, I thank the Minister for that reply. Can he say why it is that the Government, as a partner in this project—at any rate, until recently—monitoring all its aspects, are taking so many anxious weeks to come to a decision whether or not to grant a holding contract in respect of this project in order to try to keep the design team together and to limit the damage and uncertainty for those involved?

LORD BESWICK

My Lords, although in one sense the Government was a partner, legally of course the project was entirely under the ownership of the Hawker Siddeley Company. It was they who made the decision to cancel it. As to the length of time taken, I would suggest to the noble Earl that it took a considerable time before the project was started, and it would be quite wrong to end it without proper consideration.

THE EARL OF KINNOULL

My Lords, may I further ask the Minister whether it is intended to hold tripartite talks between the company, the unions and the Government?

LORD BESWICK

My Lords, as the noble Earl will be aware, in the first place the company stated unilaterally that they proposed to cancel this project. We have been asking for a long time for tripartite talks. I understand that only this week the chairman of the company has indicated that he is ready to have such talks, and I hope they will be arranged.

LORD LLOYD OF KILGERRAN

My Lords, might I ask the noble Lord whether he could say something about the potentialities of this aircraft for export purposes?

LORD BESWICK

My Lords, this is one of the points about which there is a good deal of discussion. There is a difference of opinion as to what the market might be at this present time.

THE LORD BISHOP OF SAINT ALBANS

My Lords, is the noble Lord aware of the great anxiety at present felt in a developing new town complex like Hatfield Welwyn, largely based on the aircraft industry, at the abrupt cancellation of this project? Is the noble Lord aware of the need for speedy reassurances and sensitive public relations in the matter?

LORD BESWICK

My Lords, I am aware of the anxiety which has been expressed, and I appreciate that there is a need for speed. As I said, in the first place the responsibility was that of the company concerned.

LORD SLATER

My Lords, is my noble friend aware that the statement he made that tripartite talks are to take place should be sufficient? And would it not be as well to leave the matter there until the talks have taken place?

LORD BESWICK

My Lords, certainly so far as I am concerned it is a pity that the talks have not taken place before now.

THE EARL OF KINNOULL

My Lords, may I ask the noble Lord whether, if the project goes ahead, Rolls-Royce have been offered and have accepted the manufacture under licence of the Avro-Lycoming engine?

LORD BESWICK

My Lords, I am unaware of that. The question of the engines is one of the factors in the consideration that is not at all clear. What the noble Earl has suggested would certainly be considered if it was put forward as a serious proposition.

LORD BROCKWAY

My Lords, may I ask the noble Lord the Leader of the House whether, in view of the fact that I was unable to move my Question because of delays in transport, I am permitted to put my Question now?

SEVERAL NOBLE LORDS

No!

THE LORD PRIVY SEAL (LORD SHEPHERD)

My Lords, the House has given my noble friend the answer which I fear I would he required to give him. We are required to take the order of business as it appears on the Order Paper, and unless we suspend our Standing Orders, a course which is not open to us because we need a Motion to that effect, I am afraid my noble friend will have to wait for a period before he can put his Question down again. Then I am sure my noble friend will be happy to answer it.