§ Mr. Warrenasked the Secretary of State for Industry what are the reasons for the payment by Her Majesty's Government of £5,765,983 to British Aerospace in support of the purchase of Airbus aircraft by Laker Airways; and if he will make a statement.
§ Mr. ButcherThe Government announced on 26 January 1981—[Vol. 997, c.284]—that, as an element in their continuing full support to the sales financing arrangements for the Airbus programme, they intended to provide assistance under the Civil Aviation Act 1949 to support the terms for the sale of three Airbus aircraft to Laker Airways. Similar interest rate support arrangements had been announced on 21 April 1980—[Vol. 983, c. 45–46]—for the sale of Airbus A310 aircraft to British Caledonian Airways. The Government's support is a measure for the encouragement of the production of civil aircraft and is accordingly payable to British Aerospace, as the British partner in Airbus Industrie. The intention has been to enable Airbus Industrie to offer financing terms which are competitive with those available from overseas official institutions for competing aircraft. The figure referred to by my hon. Friend was announced to the House 223W on 3 December 1982—[Vol. 33, c. 326]—and represents the total amount paid to British Aerospace in respect of the Laker sale up to the time when Laker Airways went into receivership.