HC Deb 17 November 1983 vol 48 cc518-9W
Mr. Greg Knight

asked the Secretary of State for Trade and Industry whether he has made a decision regarding the funding of the Rolls-Royce RB211–535 E4 aero engine; and if he will make a statement.

Mr. Norman Lamont

The Government have completed a detailed review of Rolls-Royce's requirement for additional funding to assist with development of the more advanced version of their RB211–535 engine known as the RB211–535 E4. Details of Her Majesty's Government's support for the original RB211–535, now designated the RB211–535C, were given in a reply to a question from the then hon. Member for Derby, North on 3 April 1979.—[Vol. 965, c.622–23.]

As a result of this review the Government has decided to offer Rolls-Royce launch aid of £70 million for this project. £60 million will be sought in this year's Winter Supplementary Estimates, and a further £10 million in 1984–85. This launch aid will be repayable by a levy on sales of the engine.