HC Deb 25 October 1973 vol 861 cc731-2W
Mr. Moate

asked the Secretary of State for Trade and Industry what is the total of funds expended or committed by Her Majesty's Government, directly and indirectly, arising from the failure of Rolls-Royce Limited, including all direct investment, loans, research and development costs; and what is the estimated future requirement for the support of current projects.

Mr. Onslow

The Government have provided £85 million net in connection with the purchase of assets from the Receiver of Rolls Royce Ltd. and the establishment of Rolls Royce (1971) Ltd. Further, the Government have provided £138 million net for the RB211–22 and £4.7 million for the M45H up to 30th September; provision of funds for other civil projects and for civil research and development is not included as it does not arise from the failure of Rolls-Royce Ltd. None of the figures cover the costs of the development and procurement of military equipment, or the costs of public administration or the costs of the social benefits and assistance provided to those affected by the failure of Rolls-Royce Ltd.

The total cost to the Government of supporing the RB211–22 is unlikely to exceed the estimate of £190 million to £195million given in Command 4860; future Government support for the stretched RB211 announced on 7th August 1972 will depend on the decision by the Lockheed Aircraft Corporation to launch the L1011–2 aircraft. For the M45H, total Government support is also unlikely to exceed the figure of £13.6 million announced on 15th November 1972. The requirement for the Olympus 593 will depend on the future level and timing of sales but will be contained within the overall limits of the Concorde programme.

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