HL Deb 30 January 1984 vol 447 c447

2.43 p.m.

Lord Beswick

My Lords, I beg leave to ask the second Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government on what date the £50 million grant to British Aerospace, made following their decision to join Airbus Industrie, was converted to public dividend capital.

Lord Cockfield

My Lords, the grant of £50 million was converted into public dividend capital with effect from 31st December 1979. This was done for what were essentially technical reasons. The public dividend capital was subsequently extinguished so that in effect the £50 million reverted to the status of a grant.

Lord Beswick

My Lords, I am much obliged to the noble Lord. However, there was no mention in the reply on 12th December to the fact that the £50 million had been converted into public dividend capital on which a dividend was paid. May I ask the noble Lord whether it would not have been better in the original Answer in the other place, and in his own Answer, if he had quoted from the memorandum of the Department of Industry of March 1982?

This states: Unlike other Governments in the programme, Her Majesty's Government has not provided finances specifically for the development costs for its national manufacturers' participation in individual Airbus projects.

Lord Cockfield

My Lords, I have answered the Question on the Order Paper. So far as the Answer given in another place is concerned, it was a precise and correct answer to the Question that was asked.

Lord Beswick

My Lords, it might have been correct up to a point but is it not misleading to suggest that a grant is a grant when in fact it is later converted into public dividend capital?

Lord Cockfield

My Lords, I think it would be most inappropriate that we should refer in such terms to replies or statements made in another place. As regards the £50 million grant, the money was paid to British Aerospace and remained with British Aerospace. It was designated under different titles over a period of time. It was first described as a grant; it was then described as public dividend capital, and the public dividend capital description was then extinguished. But none of that alters the fact that, first, it was £50 million and, secondly, it remained in the possession of British Aerospace. I do not think that those facts are in dispute. Nor can I see any grounds on which they should give rise to anxieties or doubts.