HC Deb 06 August 1975 vol 897 c233W
Mr. Walter Johnson

asked the Secretary of State for Industry whether he can now give details of the further Government support for the RB211-524 aero-engine.

Mr. Varley

On 20th June 1975, I announced that the Government agreed to support the application of the RB211-524 to the Boeing 747 at 50,000 lb. thrust. The Government's direct contribution under the contract amendment, which has now been signed, will be £8.3 million. This is in addition to the £26.3 million being provided for the development of the engine for the Lockheed TriStar. The new fixed amount represents half of Rolls-Royce (1971) Ltd.'s estimate of the cost of this new application, and part is subject to a cost escalation formula from the end of 1975 onwards. The Government will be prepared to make available on request up to a further £0.6 million for work in relation to certification of the engine in a variant of the Boeing 747.

As I also said on 20th June, we recognise that developments of the Boeing 747 may require further thrust development of the RB211-524. The Government have, therefore, agreed in principle that should such a programme be required they will contribute up to a further £12.3 million on similar terms to a programme of development up to 53,000 lb. thrust. As in the case of the development of the RB211-524 for TriStar, direct Government contributions are recoverable by a levy on engine sales.