HC Deb 03 March 1966 vol 725 cc387-8W
Mr. Wainwright

asked the Minister of Technology whether he will make a statement about the formation of the British Hovercraft Corporation.

Mr. Cousins

The proposal to merge their hovercraft interests in a British Hovercraft Corporation originated with the two firms principally concerned. At an appropriate stage, my Department was consulted. I had to consider whether to give my approval under the Development of Inventions Act, 1948, to the participation of the National Research Development Corporation in the new Corporation.

I saw Mr. C. S. Cockerell on the afternoon of 28th February following his resignation from the board of Hovercraft Development Ltd. He told me that he did not oppose the merger but was concerned lest it should have a restrictive effect on the development of the hovercraft industry. I have been into this aspect carefully since it is important that there should be nothing in the arrangements being made by N.R.D.C. which is likely to have such a result.

I agree with the Board of N.R.D.C. that the interests of hovercraft development are likely to be best served at this stage by the concentration of effort which the merger will permit, and that there are advantages in N.R.D.C.'s participation in the new Corporation.

The Government wishes to see the maximum development and exploitation by British industry of the hovercraft prin- ciple. Before giving my approval, therefore, I made sure that the arrangements proposed preserved N.R.D.C.'s freedom to licence or support other companies wishing to enter the hovercraft industry, if the public interest so requires.