HL Deb 15 January 1985 vol 458 cc958-9WA
The Earl of Kimberley

asked Her Majesty's Government:

(a) What steps they are taking to induce the European Community Development Commission to review their decision not to make a grant towards the purchase by Leeward Islands Air Transport (LIAT) of four British Aerospace Super-748 aircraft; and

(b) Should the European Community Development Commission decline to do this, whether Her Majesty's Government will be prepared to contribute towards the necessary funding through the Caribbean Development Bank for the purchase of these aircraft.

The Minister of State, Foreign and Commonwealth Office (Baroness Young)

The Caribbean authorities have themselves decided not to pursue European Development Fund assistance for the purchase of aircraft. On 13th December the Caribbean Development Bank approved a loan for two aircraft from their own concessional resources, to which the United Kingdom makes a substantial contribution. LIAT is now considering how to meet its further requirements and we have offered aid towards the purchase of another two Super HS 748s. This offer was made in the light of a concessional package proposed by the Canadians for Dash aircraft. The LIAT board of directors will consider its option in detail at the end of this month.

The Earl of Kimberley

asked Her Majesty's Government:

Whether they will call for an inquiry into the way in which the European Community Development Commission have conducted their consideration of the application by Leeward Islands Air Transport (LIAT) and the Caribbean Development Bank for funding for the purchase of four new aircraft.

Baroness Young

We have asked the Commission to make public their reasons for rejecting LIAT's economic analysis, which was endorsed by the Caribbean Development Bank.