HC Deb 07 February 1972 vol 830 cc238-40W
45. Mr. Sheldon

asked the Secretary of State for Trade and Industry if he will make a further statement on Rolls-Royce.

Mr. Corfield

I have nothing to add to the full account given in the White Paper on Rolls-Royce Limited and the RB211 aero-engine (Cmnd. 4860).

Mr. Kenneth Baker

asked the Secretary of State for Trade and Industry what proposals he has for the sale of the motor manufacturing side of Rolls-Royce.

Mr. Corfield

The motor car division of Rolls-Royce has been transferred to a new company, Rolls-Royce Motors Ltd. The disposal of this company is a matter for the Receiver and Joint Liquidators of Rolls-Royce Ltd.

Mr. Whitehead

asked the Secretary of State for Trade and Industry at what date he expects the responsibilities of the Receiver regarding Rolls-Royce (1971) Limited to be terminated.

Mr. Corfield

The Receiver of Rolls-Royce Limited has no responsibility for Rolls-Royce (1971) Limited. He has a contractual relationship with that company in respect of the price payable for the assets it has acquired from him.

I cannot forecast when this contractual relationship will be discharged.

Mr. Arthur Lewis

asked the Secretary of State for Trade and Industry whether he will publish in the OFFICIAL REPORT full details of the aid and support given to Rolls-Royce; and to what extent, on Great Britain's entry into the European Economic Community, such aid and subsidies will be permitted to continue.

Mr. Corfield

The following are details of aid given to Rolls-Royce from 1945 to 1971 in connection with their aero-engine work. There is explicit provision in the Treaty of Rome under which aid of this kind can continue.

EXPENDITURE COMMITTEE: TRADE AND INDUSTRY SUB-COMMITTEE

PUBLIC MONEYS MADE AVAILABLE TO ROLLS-ROYCE LTD. OTHER THAN DIRECT EXPENDITURE ON MILITARY AERO-ENGINES

1. From 1945 up to February, 1971 some £228m. was made available to Rolls-Royce, or to companies which subsequently merged with Rolls-Royce, for civil aero-engines, as follows:

Type Date of Expenditure Government Contribution £m.
Proteus 1945–55 19.3
Dart 1945–53 5.6
Eland 1951- 10.9
Tyne 1956–60 4.0
Orion 1957–60 4.8
Avon RA29 1958- 8.5
Spey 1962–70 10.0
Trent 1967–69 2.0
RB178 1966–67 1.3
RB207 1967–68 1.6
RB211 1968–71 47.1
Olympus 593 1962–71 112.4

2. Other payments which have been made to Rolls-Royce Ltd., the Receiver, or Rolls-Royce (1971) Ltd. are:

  1. (i) The IRC paid £10m. to Rolls-Royce. Ltd. on 31st July, 1970 as the first part of a loan to the Company to assist them in coping with the financial problems to which their RB211 programme had given rise.
  2. (ii) Between 4th February, 1971 and 22nd May, 1971 the sum of about £4m. was paid or due to be paid to the Receiver and Manager of Rolls-Royce Ltd. for work on the Concorde engine and about £13m. for work on the RB211 in fulfilment of an indemnity given to him by the Government for expenditure on the latter engine.
  3. (iii) Between 23rd May, 1971 and 31st July, 1971 the sum of about £4.5m. has been paid or is due to be paid to Rolls-Royce (1971) Ltd. for work on the Concorde engine and about £16m. for work on the RB211 engine.
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  4. (iv) Between 23rd February, 1971, the date of the Company's formation, and 31st July, 1971, £55.05m. has been provided to Rolls-Royce (1971) Ltd. or paid on their behalf under the Rolls-Royce Purchase Act 1971.

Footnote

Figures are given to the latest date for which information is readily available.

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