§ 2.46 p.m.
§ Lord Bruce-GardyneMy 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 what consultations with the Department of Industry preceded the decision by Rolls-Royce 1971 to make 42.5 million dollars available in loans and equity to Jet Express of Chicago for the purchase of Pratt and Whitney engines.
§ Lord CockfieldNone, my Lords.
§ Lord Bruce-GardyneMy Lords, I am grateful to my noble friend for that reply. But should we not conceivably reckon that the Department of Industry should have had consultation with Rolls-Royce 1971 before this remarkable deal was struck, bearing in mind that in the past two years this business has lost £300 million or more of the taxpayers' money? Is it not a matter of some concern that they should provide 42 million dollars in loan and equity, for a business that has not even started, to lease from some Maharishi gentleman an aircraft carrying the engines of their competitors? Does that not sound like a pretty loony deal for a company in this degree of trouble to undertake?
§ Lord CockfieldMy Lords, the relationships between Rolls-Royce and the Government are governed by a Memorandum of Understanding dated 15th December 1980. This was published on 22nd June 1982 in the Sixth Report of the House of Commons Industry and Trade Committee 1981–82. My noble friend was a Minister at the Treasury at that time and this matter will therefore be well within his knowledge.