§ Mr. Whiteheadasked the Secretary of State for Industry whether he has yet made a decision on Rolls-Royce (1971) Ltd's proposals for the use of the RB211–524 aero-engine in the Boeing 747 aircraft.
§ Mr. VarleyThe Government have agreed to support Rolls-Royce (1971) Limited's proposals for the application of the RB211–524 engine to the Boeing 747 aircraft on the basis of an order from British Airways. The Secretary of State for Trade has given his approval for such an order to be placed.
The Government contribution towards the cost will commence as soon as contractual details are completed and British Airways place their proposed order for the aircraft with those engines. The Government will contribute as launching aid approximately half of the costs of this programme, to use the engine in the Boeing 747 50,000lb thrust. The contribution is recoverable by a levy on engine sales.
We recognise that it may be necessary for the engine to be developed to a higher thrust level for the Boeing 747. I have, therefore, also agreed in principle that, should such a programme be required, the Government would support a further development programme to achieve 53,000lb thrust.
I shall give the House the details of Government support when the agreement with the company is signed.