HC Deb 20 February 1984 vol 54 cc438-40W
Mr. Onslow

asked the Secretary of State for Northern Ireland what is the latest forecast available to him of the break-even point on production of the Lear Fan 2100 aircraft.

Mr. Butler

[pursuant to his reply, 16 February 1984 c. 306.]: It would be improper for me to disclose the information sought, which is a matter of commercial confidentiality.

Mr. Onslow

asked the Secretary of State for Northern Ireland if he will list the defects in the initial design of the Lear Fan 2100 aircraft which have been revealed in static testing.

Mr. Butler

[pursuant to his reply, 16 February 1984 c. 306.]: The static tests on the airframe have revealed a number of defects in the initial design, including a defect to the cabin door, which have been corrected. Modifications to the wing and fuselage have also been made and are being subjected to further static testing.

Mr. Clifford Forsythe

asked the Secretary of State for Northern Ireland how much public money had been committed to the Lear Fan project; at what intervals this money is being released; and how much of this money is being spent in (a) Northern Ireland and (b) the United States of America.

Mr. Butler

[pursuant to his reply, 14 February 1984 c. 171.]: Prior to the new financial agreement, which was concluded on 14 September 1982, Her Majesty's Government had provided the company with funds totalling £25.3 million and a bank guarantee of $15 million. Under the September 1982 Agreement Her Majesty's Government agreed to provide further public funds up to a maximum of $30 million in the form of loan capital, matching private sector funds of $60 million, and to extend the bank guarantee.

Funds are provided to the company on the basis that an input of funds to the company from the private sector is matched by an input of public sector funds in the 2:1 predetermined ratio specified in the September 1982 agreement. Funds are requested by Lear Fan against need and in line with the company's cash forecast.

The funds available to the company, whether drawn from private sector of public sector sources, are for the general purposes of the business, and the allocation of these funds to the various parts of the business is a matter for management.