§ Mr. Carter-Jonesasked the Prime Minister what practical support and encouragement the appropriate Departments in Her Majesty's Government are giving to sustaining and expanding the work force and the high technology involved in (a) the airframe, (b) the avionics, and (c) the power plant aspects of the British aircraft industry; what estimates have been made of the contribution of the aircraft industry to the United Kingdom's balance of payments; and if she will make a statement.
§ The Prime MinisterThe Department of Trade and Industry and the Ministry of Defence are giving practical support and encouragement to the aircraft industry in many ways, including (in the Department of Trade and Industry's case) the provision of launch aid to British884W Aerospace for the Airbus A320, to Rolls-Royce for the V2500 engine and to Westland for the EH101 helicopter. The avionics industry benefits indirectly from this support. In addition, the Department provides funding under its civil aircraft and aero-engine R and D budget which is designed to assist the industry to maintain and develop its technology base, and individual companies are eligible for various types of selective financial assistance.
The Ministry of Defence's policy is to procure defence equipment by competitive means whenever practicable and reasonable in order to get the right equipment for the armed forces and the best long-term value for money for the taxpayer. Procurement choices are made in the light of all the factors which are relevant to obtaining long-term value for money, including the defence benefits of maintaining particular industrial capabilities. The 'Defence Ministry believes that operating this way will not fragment or weaken our defence industries but on the contrary strengthen them and increase their competitiveness.
In 1985 the United Kingdom exported £3,752 million of new aerospace equipment. This represents 4.8 per cent. of all United Kingdom visible exports and a surplus of exports over imports of £1,180 million.