HL Deb 09 May 1977 vol 383 cc4-5

2.41 p.m.

The Earl of KIMBERLEY

My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether it is true that British Airways, owing to their increased air tour business, are going to buy Boeing 737s instead of BAC 1–11s thereby doing harm to the British aerospace industry.

Lord ORAM

My Lords, I am informed by British Airways that no decisions have been taken on future aircraft procurement for the airline's air tour business.

The Earl of KIMBERLEY

My Lords, while thanking the Minister for that Answer, may I ask whether he is aware that discussions have gone on for the purpose of British Airways buying six aircraft for their air tours, and is he aware that the 1–11 has a very similar performance to that of the 737; that the 1–11 is almost half the price; and that Dan-Air, B. Cal and Monarch, who run air tours of the same type as British Airways' air tours, all use 1–11s? Further, would he not agree that if this decision to buy American aircraft is taken it may be the thin end of the wedge for the purchase of further foreign aircraft by British Airways?

Lord ORAM

My Lords, I take note of the comparisons that the noble Earl has made. I would say that the purchase of new aircraft by British Airways is primarily a matter for the commercial judgment of the airline; but in approving any purchase the Government will naturally take into account the interests of the British aerospace industry. That will be done.

The Earl of KIMBERLEY

My Lords, I thank the Minister for that answer, and should like to ask him one more question. Is he aware that there are three secondhand BAC 1–11s available for operations by the spring of 1978, which is when they will be required?

Lord ORAM

My Lords, I was not aware of that, but I am sure that people in my Department are aware of it.

Lord TREFGARNE

My Lords, having regard to the similarity between the 1–11 and the 737, as described by the noble Earl, can the Government say whether British Airways will be exempted from Customs duty on the Boeing 737s if that is the type upon which they decide?

Lord ORAM

My Lords, I am afraid that I should need to have notice of such a supplementary question.

Lord LLOYD of KILGERRAN

My Lords, is the noble Lord in a position to say whether the question of the purchase of American aircraft of this type will be considered by the Government in the context of the EEC attempts to build up a European aircraft industry?

Lord ORAM

My Lords, I indicated that the Government in considering any such question—if it arises; and it has not yet arisen—would certainly take into account the interests of our own airspace industry. I have no doubt that these interests will be considered in the context of the European situation to which the noble Lord has referred.