§ The Earl of KimberleyMy 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 what progress is being made in replacing the Royal Naval Sea King helicopter with the Anglo-Italian EH 101.
§ The Minister of State, Ministry of Defence (Viscount Trenchard)My Lords, a review of the Royal Navy's requirement for a replacement for the Sea King helicopter is now nearing completion. Should this confirm the projected Anglo-Italian EH 101 aircraft as the preferred option, it will be necessary for the United Kingdom and Italy jointly to conduct a detailed study into the feasibility of a collaborative solution to the respective requirements of their navies. Preparations for such a study have been completed.
§ The Earl of KimberleyMy Lords, while thanking my noble friend the Minister for that Answer, may I ask whether he can confirm that the Memorandum of Understanding No. 2 has already been signed by the Italian Government, though I do not believe by us? Is he further aware that if we are to get into this very large market in 1987/88 of about 2,000 helicopters, which would exclude the United States, time is of the essence? Furthermore, is he aware that if the EH 101 aircraft is to be launched we should achieve around 40 per cent. of this market?
§ Viscount TrenchardMy Lords, my noble friend is correct in saying that Italy has recently decided in favour of the joint studies with the United Kingdom, aimed at establishing the feasibility of this collaboration. In regard to the market, I am delighted to hear what my noble friend says, particularly in relation to the civil side of that market, and his view of the degree to which we might capture a share of it. That is indeed the kind of desirable market approach we need from industry if the costs of these highly sophisticated projects, which escalate so much between one generation and another, are to be ably handled.
§ The Earl of KinnoullMy Lords, can my noble friend indicate what the development costs of this project are likely to be?
§ Viscount TrenchardMy Lords, I would rather not do that at this stage before the joint feasibility study has even been decided upon.
§ Lord Orr-EwingMy Lords, will my noble friend bear in mind that a joint venture of this kind between two countries as a result of a Memorandum of Understanding is highly desirable since it means a sharing of the development, the early production costs and the trials of these potentially successful helicopters? Will he therefore give this a favourable push in the right direction so that we can get on and help to meet these considerable markets, both civil and military, which are going to be available within this decade?
§ Viscount TrenchardMy Lords, what my noble friend says is noted. The benefits of international co-operation are indeed very real and it is essential that we should make them work. I think the history to date has been that some have worked much better than others.