§ 9. Mr. Adleyasked the Secretary of State for Trade and Industry if he will take steps to involve the British Export Board in the marketing of Concorde.
§ Mr. John DaviesThe full range of export services provided by the Department of Trade and Industry, and now under the overall direction of the British Export Board, are already available to the manufacturers of Concorde, with whom my officials are in close touch.
§ 63. Mr. William Rodgersasked the Secretary of State for Trade and Industry what allowance has been made for the writing-off of research and development expenditure in the figure of £13 million agreed with the French Government as the pricing formula for Concorde.
§ Mr. John DaviesIt would not be in the best interests of the project to give further details of the commercial elements of the pricing formula.
§ Mr. Hugh Jenkinsasked the Secretary of State for Trade and Industry (1) how much public money he intends to spend on manufacture and sale of Concorde;
(2) if he will undertake that no further Government subsidy will be involved in the manufacture of production models of Concorde.
§ Mr. John DaviesWe intend to finance the manufacture of Concorde by interest-bearing loans. The amount of loans required will depend on the number of aircraft sold, and the terms of payment agreed with airlines.
§ Mr. Hugh Jenkinsasked the Secretary of State for Trade and Industry how much further public money he intends to spend on the further development of Concorde.
§ Mr. John DaviesThe last Anglo-French estimate of development costs was £885 million at December, 1970, prices. Of this the United Kingdom share is £440 million of which £320 million had been spent up to 31st December, 1971, leaving £120 million outstanding. This estimate is currently being reviewed.
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§ Mr. Hugh Jenkinsasked the Secretary of State for Trade and Industry if the European Economic Community rules will permit him to sell Concorde to the British Overseas Airways Corporation below cost price or to subsidise the British Overseas Airways Corporation to enable them to purchase and to run it.
§ Mr. John DaviesI understand the Community has no rules relating to these matters.
§ Mr. Hugh Jenkinsasked the Secretary of State for Trade and Industry, (1) if he will undertake not to subsidise British Overseas Airways Corporation purchases of Concorde;
(2) at what price he proposes to permit the British Overseas Airways Corporation to purchase Concorde;
(3) if he will undertake that Concorde will not be sold to the British Overseas Airways Corporation at a price below the cost of manufacture.
§ Mr. John DaviesThe price paid by B.O.A.C. will depend on its negotiations with the manufacturers. The pricing formula agreed by M. Chamant and my right hon. Friend, is intended to recover the full costs of production and normal commercial margins.
§ Mr. Hugh Jenkinsasked the Secretary of State for Trade and Industry what measurement has been made of the noise produced by the Concorde; and how it compares with the levels permitted at London Heathrow Airport.
§ Mr. John DaviesOn the basis of extrapolations from measurements on the production aircraft, the manufacturers expect Concorde's noise on entry into service to be comparable with that of the Boeing 707s and DC 8s, which meet the noise requirements at Heathrow.
§ Mr. Hugh Jenkinsasked the Secretary of State for Trade and Industry whether the basis of the pricing formula of £13 million for Concorde includes a margin of profit; whether it also includes any return to the Government for the sums expended on the project; and if he will state the pricing formula being followed.
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§ Mr. John DaviesThe answer to the first two points is "Yes". It would not be in the best interests of the project to give further details of the commercial elements of the pricing formula.
§ Mr. Hugh Jenkinsasked the Secretary of State for Trade and Industry how many countries have now indicated that they are prepared to allow Concorde to fly overland in their airspace.
§ Mr. John DaviesThe right of overflight of other countries by British airlines is conveyed by international agreements which do not require specific permission for any particular category of aircraft. These rights are, however, subject to the law of the State concerned and it is recognised that some States may control supersonic overflights.