§ The Earl of Cork and OrreryMy Lords, I beg leave to ask the first Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what steps they are taking to secure European Community funding for the proposed purchase of four British Aerospace Super-748 aircraft for Leeward Islands Air Transport (LIAT).
§ The Minister of State, Foreign and Commonwealth Office (Baroness Young)My Lords, my right honourable friend the Minister for Overseas Development has discussed the matter on several occasions with the Development Commissioner, M. Pisani, and with the Director-General for Development, and has set out our view in writing.
§ The Earl of Cork and OrreryMy Lords, I am most grateful to my noble friend for that Answer. Is it not the case that LIAT, the operating company concerned, is strongly in favour of purchasing the British aeroplane and is totally opposed to the Franco-Italian one? Are Her Majesty's Government prepared to insist on a revelation of the negotiating processes that went on with the EEC in order to come to their present decision?
§ Baroness YoungMy Lords, the Caribbean governments who own LIAT have made clear their strong preference for the Super-748, which, unlike its French rival, is available now. May I make clear that it is the Commission's responsibility to manage Community aid funds; and the rules for Community aid require that the economically most advantageous offer be approved.
Lord Bruce of DoningtonMy Lords, can the noble Baroness reveal to the House what views Her Majesty's Government communicated to M. Pisani?
§ Baroness YoungMy Lords, it is our view, because we are involved in this matter, that it is the Commission's responsibility to ensure that economically the most advantageous offer is selected. In this particular case it has received advice from the three independent consultants. The Commission believes that LIAT will need assurances about delivery times and other conditions which it is by no means certain that Aerospatiale can in fact provide.
§ Lord Orr-EwingMy Lords, will the noble Baroness perhaps place in the Library the explanation as to why 1308 this aircraft is being forced on LIAT? Is it not true that we are contributing 20 per cent. of the funds to the Development Commission? Is it not equally true that it is an unproven aircraft which will not be available until 1986? Is it not also true that it uses North American engines and therefore has only 7 per cent. of its content manufactured in Europe, while the Super-748 has 90 per cent. so manufactured? Therefore, is it not astonishing that the clients, LIAT, are not allowed to choose the aircraft which best suits them—an aircraft which is available, and much of which is manufactured on Merseyside, where it would provide very valuable jobs? Can my noble friend be a little more robust in dealing with the EEC Development Commission on this matter?
§ Baroness YoungMy Lords, I should stress to my noble friend, in answer to his supplementary question, that the situation is one which is changing from day to day. The Commission has employed three independent consultants and has taken the view that the ATR-42 meets LIAT's technical requirement, provided that it gets certain assurances. So far as Britain is concerned, we believe that it is important to adhere to the Community's rules and it is essential, indeed, to our own long-term aim of improving the quality and effectiveness of Community aid to which, of course, we contribute 18 per cent.
Lord Bruce of DoningtonMy Lords, I am sorry to trouble the noble Baroness further. Would she mind informing the House of the identity of the three independent consultants to whom she has referred?
§ Baroness YoungMy Lords, as I understand it, one of them was a consultant from Lufthansa. I think that I shall have to write to the noble Lord in regard to the other two consultants.