The Helicopter Industry (Hansard, 17 May 1985)

§ The Earl of Kinnoull
My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

§ The Parliament Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)
My Lords, the British helicopter industry, in common with helicopter industries overseas, is currently suffering from the effects of a worldwide decline in demand for such aircraft. However, Westland, the United Kingdom's sole helicopter manufacturer, has achieved considerable success with sales of its military helicopters. Newly developed helicopters (the Westland 30 and the Anglo-Italian EH.101) with both civil and military applications should provide a firm basis for the company's future.

§ The Earl of Kinnoull
My Lords, I thank my noble friend for that reply. Is he aware that with an industry that covers not only the main contractor but also many sub-contractors—there are involved about 90 companies, employing 30,000 highly skilled people—with exports of 50 per cent., valued at over £100 million a year, there is a concern about an apparent lack of co-ordination between Government departments in the policy of support for this industry?

§ Lord Lucas of Chilworth
My Lords, I appreciate the first part of my noble friend's question. I do not believe that there is any lack of co-ordination on the part of Government departments, in so far as the Department of Trade and Industry has given support to Westlands in terms of the W30–200 and W30–300 and the EH.101. In so far as other departments are concerned, their strategic demands are met by the company as and when those demands arise.

§ Lord Mulley
My Lords, has the Minister and his department given consideration to the future not only of helicopters but also of other defence industries, in the light of the new policy of the Ministry of Defence in putting contracts out to competition, such as in the recent requirement for military training aircraft, with the consequence that we are buying them off-the-shelf from overseas nations?

§ Lord Lucas of Chilworth
My Lords, the noble Lord will be aware that it is the Government's general policy to offer contracts in as open and competitive a way as possible. Whether or not overseas countries win such contracts is another matter. In so far as the helicopter industry is concerned, Westland's has done extremely well with Government contracts.

Lord Paget of Northampton
My Lords, does the Minister not agree that helicopters are by far the most valuable of all weapons in guerrilla warfare? Situations involving guerrilla warfare are those which arise with the least warning. When they do arise, we always find ourselves short of helicopters.

§ Lord Lucas of Chilworth
My Lords, I am not sure whether I am really able to answer on what is the best weapon in a certain circumstance. I leave that to my colleagues in the Ministry of Defence.

§ Lord Cledwyn of Penrhos
My Lords, does the noble Lord not agree that the development of a passenger-carrying helicopter—if I may move from the military area for the moment—has been a matter of discussion in this country for the past 30 to 35 years? Given our experience in the North Sea and elsewhere, is the noble Lord able to say whether the Government still believe that the development of a safe helicopter is still a possibility, in view of the great contribution that that could make, especially in the British Isles themselves?

§ Lord Lucas of Chilworth
My Lords, I think that the short answer is: yes, indeed. The EH.101, 30-seater, civil, military and naval aircraft, is being developed with £60 million-worth of Department of Trade and Industry launch-aid; which is an expression of our belief in exactly what the noble Lord just said.

§ The Earl of Kinnoull
My Lords, can my noble friend confirm that the lack of co-ordination which I have suggested is, of course, between trade and defence? As the noble Lord, Lord Mulley, just said, it is the defence issue which is so vital. Can my noble friend confirm that there will be a commitment to a purchase order by Her Majesty's forces for the EH.101 collaborative programme currently under way with Italy?

§ Lord Lucas of Chilworth
No, my Lords, I regret that I cannot confirm that there will be a commitment by the Ministry of Defence to buy this aircraft. It will depend entirely on the circumstances at the time the aircraft is ready and the demands of the services regarding procurements.