§ 2.44 p.m.
§ Lord Brougham and VauxMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what is their assessment of the annual value of the British Aerospace exports.
§ Lord BeaverbrookMy Lords, in the 10 months to October 1986 the industry's exports were worth £308 billion, an increase of 10.6 per cent. on the same period in 1985.
§ Lord Brougham and VauxMy Lords, I thank my noble friend for that extremely encouraging reply. Can he tell the House what countries take the largest proportion of those exports by value?
§ Lord BeaverbrookYes, my Lords, the United States of America takes by far the largest share. Other leading export markets are West Germany and Saudi Arabia.
§ Lord Williams of ElvelMy Lords, can the noble Lord tell the House what proportion of those exports are financed under United Kingdom Government guarantees?
§ Lord BeaverbrookNot without notice, my Lords.
§ Lord Williams of ElvelMy Lords, this is a very easy supplementary question. Is the noble Lord aware, and does he agree with me, that approximately 25 per cent.—I do not have the exact figure, but no doubt the noble Lord will give it—are under ECGD guarantees? Does not the noble Lord agree that that is very important assistance to British Aerospace? Will the noble Lord give, on behalf of the Government, an unequivocal commitment that the assistance to British Aerospace will continue in its present form?
§ Lord BeaverbrookMy Lords, of course, we are delighted with the industry's progress in the export market and in particular the progress of the British Aerospace Corporation. The Government continue to support the industry.
§ Lord UnderhillMy Lords, in view of the contribution of the airbus in helping to develop the success of British Aerospace, will the Government give an assurance that any aid that is required for future development of the airbus will continue to be given, as it has in the past?
§ Lord BeaverbrookMy Lords, the application by British Aerospace for launch-aid of £750 million was received by the Department of Trade and Industry on 20th October last year. A detailed appraisal of the commercial, financial and technical aspects is now well advanced. The present aim is for the Government to reach a decision as soon as possible, in parallel with the other airbus partner governments.
§ Lord AldingtonMy Lords, in view of the last two supplementary questions, is it not important that the House understands that the assistance given by Her Majesty's Government is no greater than the assistance given by governments of other countries? It is not as if the aerospace industry is receiving a special subsidy or subvention from Her Majesty's Government to advantage it over competitors. The industry is being put into the same position as its rivals.
§ Lord BeaverbrookYes, my Lords, the Government's aid to the industry, and to the British Aerospace Corporation in particular, conforms with the general rules laid down under the General Agreement on Tariffs and Trade.
§ Lord AveburyMy Lords, when the American envoys visited this country to make representations to Her Majesty's Government about the special launch-aid given to the European airbus—in particular the proposed £700 million to finance the next version—did the Government succeed in convincing our friends that this did not constitute an infringement of the GATT rules or any other international agreements on fair trading practices?
§ Lord BeaverbrookYes, my Lords, and we pointed out that the support given to the airbus in the past and any support for the future will be no more than that received by major United States companies who benefit from substantial support from the United States Government through military and other programmes.
§ Lord Orr-EwingMy Lords, in the figures that he gave us for the breakdown of exports can my noble friend say what part is played by aircraft parts, and more particularly aircraft engines?
§ Lord BeaverbrookMy Lords, if my noble friend would like to table a Question, I shall be very pleased to answer it.
§ Lord TordoffMy Lords, can the noble Lord tell us whether this is a company that will come under the aegis of the American audit about which we heard something yesterday?
§ Lord BeaverbrookNot without notice, my Lords.