HC Deb 27 November 1978 vol 959 cc77-8W
Mr. Onslow

asked the Secretary of State for Industry what guarantees have been given to British Aerospace about the availability of public funds to meet the negative cash flow involved in participation in the European airbus project.

Mr. Les Huckfield:

As stated by my right hon. Friend the Minister of State in his reply of 6th November [Official Report, cols. 19–20] to the hon. Member for Flint, West (Sir A. Meyer), the Government propose, subject to the approval of Parliament, to make available to British Aerospace up to £50 million under section 45 of the Aircraft and Shipbuilding Industries Act 1977. Apart from this assistance, the investment will be funded, in the same way as the rest of British Aerospace's capital expenditure, from internal resources, and from external sources, including a mixture of public dividend capital and loans from the National Loans Fund.

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