HL Deb 16 July 1980 vol 411 cc1771-3

2.46 p.m.

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 whether the policy announced to the National Economic Development Council on 2nd July of encouraging public sector authorities to purchase British products will apply to the purchase of British aircraft and other aerospace products.

The MINISTER of STATE, DEPARTMENT of INDUSTRY (Viscount Trenchard)

My Lords, the approach outlined to the National Economic Development Council on 2nd July by the Secretary of State for Industry was to encourage closer relationships and discussion of forward plans by public sector suppliers. It therefore includes the purchase of aircraft and other aerospace products.

Lord BESWICK

My Lords, while thanking the Minister for that reply, may I ask whether he is aware—as of course he will be—that since my Question was tabled the decision to buy Jetstream has been announced? May I be allowed to congratulate Her Majesty's Government on this application of the new policy? Would the noble Viscount agree that, given the necessary determination from everyone concerned, including the workforce—and I am sure that will be forthcoming—that purchase could lead the way to a new competitive position in the market for that size of aircraft? May I also ask whether this new policy of the Government will mean that British Airways will now take a more constructive view of the possible purchase of British aircraft?

Viscount TRENCHARD

My Lords, I must first tell the noble Lord that, while there has been much press comment, on the accuracy of which I cannot remark, the decision in relation to Jetstream or its rival has not yet been taken. However, the new policy will be fully taken into consideration in arriving at that decision. In relation to British Airways, I know that the noble Lord, with his great experience of trying to supply them and other airlines, has from time to time suggested that their policy has not always been most helpful to British industry. I also think he would agree with me that he has never asked that they should be ordered to buy British at all costs, and that value for money, early contact and working together on development is the key to this, which he has advocated, and those are the factors which will be operated in the new policy.

Earl DE LA WARR

My Lords, will the Minister bear in mind that other aerospace projects include flight simulators, which are a vital part of pilot training and whose British manufacturers have in the past suffered badly, like aeroplanes, from transatlantic competition?

Viscount TRENCHARD

Yes, my Lords; the new policy will cover all products where British industry can offer the right product as good value for money.

Lord BESWICK

My Lords, is the noble Viscount aware that I have never asked that British products should be purchased irrespective of cost? In connection with British Airways, it is entirely within the ambit of the Secretary of State's declared policy that I am asking the Minister to agree that they should look at the possibility of purchasing British aircraft in a more constructive way than has been apparent in the last two or three years.

Viscount TRENCHARD

Well, my Lords, I am not able to give an informed judgment on the degree of constructive purchasing policy of British Airways in previous years. However, I can assure the noble Lord that the new policy is designed to ensure that all purchasing authorities do their very best to drag forward new British technology and to look at the needs in order to produce not only what the purchasing authority itself may want, but what may also sell on the world markets, and in that way to be able to secure better value for money in the long term as well as the short term.

The Earl of KIMBERLEY

My Lords, can my noble friend make any comment on British Airways removing the word "Airways" from American aircraft, thereby leaving on the aircraft the word "British" when in fact they are not British?

Viscount TRENCHARD

No, my Lords.