§ 3.17 p.m.
§ Lord Randall of St. Budeaux asked Her Majesty's Government:
§ What steps they are taking to encourage the restructuring of the European aerospace industry.
§ The Minister of State, Department of Trade and Industry (Lord Clinton-Davis)My Lords, Ministers and their officials are working closely with the UK aerospace industry and with other European governments to encourage the restructuring of that industry.
§ Lord Randall of St. BudeauxMy Lords, I thank my noble friend for that Answer. Is he aware that the restructuring of the British aerospace industry must now take place because of the immense changes and the competitive disadvantages that we suffer as against the American aerospace industry? Is he also aware that were we to proceed along the lines being advocated by British Aerospace, we would establish a trans-national European defence and aerospace industry? There is concern that the defence market will change and that will have an impact on our defence procurement policy. Are the Government satisfied that British defence interests will be protected if the industry's proposals go forward?
§ Lord Clinton-DavisMy Lords, there can be no doubt that it is vital to be able to restructure and consolidate the aerospace industry so that we can compete internationally. The Government are using all their endeavours to achieve that purpose within Europe. In reply to my noble friend's second question, we shall of course use our best endeavours to ensure that in this respect our own defence industry is protected properly and is globally competitive. I believe that that is the objective to which my noble friend is alluding.
§ Lord TebbitMy Lords, does the Minister agree that it is not clear that the best options are partnerships within Europe principally because the restructuring which has occurred in this country has not been followed in France? While it is possible to do deals with the Germans which are generally honoured, it seems to be extremely difficult to do deals with the French. Would it not make more sense in many cases to have partnerships with the United States?
§ Lord Clinton-DavisMy Lords, the partnership which has been created in relation to the aerospace industry has been spectacularly successful. The Airbus has been successful internationally; it has been flown by a wide range of airlines, including American airlines. The allusion which the noble Lord draws is both unfair and inaccurate. Questions of consortia with the American aerospace industry are a matter for the industry to determine.