§ Mr. Whiteheadasked the Secretary of State for Industry what support the Government are giving to the RB 211–524 aeroengine.
§ Mr. BennSince 1972 the Government have been providing Rolls-Royce (1971) with financial contributions towards the launch costs of a more powerful version of the RB 211 aeroengine, designated the RB 211–524. In September 1974 the Government undertook to give support for the completion of the launch programme and to agree to a production commitment for the -524 for use in the Lockheed Tristar, as soon as a firm order was obtained for these engines. An order was placed later in September and a contract has now been signed to give effect to this support.
As previously announced, the estimated total launch cost for the -524 for the Tristar is £45 million at 1973 prices. The Government will make agreed phased contributions up to 1978 which, including payments already made, will bring the direct Government support for the -524 to a total of £26.3 million, but the payments for 1976 and subsequent years will be subject to escalation based on cost increases after 1975. The Government contributions are recoverable by a levy on engine sales.
The Government have informed Rolls Royce (1971) Ltd. that they will also 622W support further development and applications of the -524 for use in the Boeing 747 when a further major order is obtained in addition to that from British Airways.