Mr. Batesasked the Secretary of State for Industry what Government equity and loan funding are Rolls-Royce (1971) Limited to receive in 1976 and later years.
§ Mr. VarleyThe Government's 100 per cent. shareholding in Rolls-Royce (1971) Limited is shortly to be transferred to the National Enterprise Board which will be responsible for the Company's financing. It is not possible to decide at778W present on what funds Rolls-Royce should receive in 1976 because the company has not yet put forward its operating plan. Meanwhile, current financing arrangements are continuing as necessary.
For the longer term, Rolls-Royce has formulated a general strategy within which on 9th December it submitted broad financial forecasts for the next five years. These are now under examination. Decisions on individual civil engine projects within this programme will be made when the company makes definite proposals and after a rigorous economic assessment.
Support is already committed, of course, on RB211 applications for the Lockheed L1011 and Boeing 747. The company has put forward no definite proposals at present for financial support for new projects although some possibilities are outlined in its five-year forecasts.