HC Deb 28 April 1988 vol 132 cc244-5W
Mr. Teddy Taylor

To ask the Secretary of State for Defence pursuant to his statement of 25 April,Official Report, columns 21–22, for what reasons Her Majesty's Government declared production offtake of the new European fighter aircraft was set at a figure of 250; and what are the comparable offtakes set out by the other participant nations

Mr. Sainsbury

Each of the partner nations declared its projected production offtake in 1985 on the basis of its perceived needs. These declared offtakes and the development workshares for which they formed the basis remain unchanged as follows:

Number of aircraft Percentage
United Kingdom 250 33
Federal Republic of Germany 250 33
Italy 165 21
Spain 100 13

Mr. Teddy Taylor

To ask the Secretary of State for Defence pursuant to his statement of 25 April,Official Report, columns 21–22, whether the actual expenses incurred by the European fighter aircraft development programme will be made public; and whether the United Kingdom financial liability will relate only to the work contracted for by Her Majesty's Government.

Mr. Sainsbury

Details of United Kingdom expenditure on the development of the European fighter aircraft will be made available to Committees of the House in the normal way, but any consideration of wider publication would need to take account of our obligations to our international partners. Contracts will be let on behalf of the participating nations by NEFMA (the Eurofighter management agency) on the two prime contractors, Eurofighter Jagdflugzeug GmbH and Eurojet Turbo GmbH, at the request of the four participating nations. In the context of the agreements among the four nations, the United Kingdom will have a financial liability within the terms of the prime contracts for the United Kingdom's workshare. The United Kingdom will in addition have a financial liability to fund a 33 per cent. share of the international administrative costs of the programme.

Mr. Teddy Taylor

To ask the Secretary of State for Defence if a decision has yet been made on the organisation or body which will determine the sale price of the European fighter aircraft offered for sale abroad in the event of the project proceeding to production.

Mr. Sainsbury

No. It would be premature at this stage to reach a decision on the price of EFA for export. We are confident, however, that EFA will prove to be very attractive to potential customers.

Mr. Teddy Taylor

To ask the Secretary of State for Defence if a decision has yet been made on the location of the headquarters of the Eurofighter consortium; what will be the legal structure of that organisation; and if he will make a statement.

Mr. Sainsbury

The corporate headquarters of Eurofighter Jagdflugzeug GmbH has been established at Munich since 1986. It is there colocated with the international government management agency (NEFMA). Eurofighter is wholly owned by the partner aircraft companies (British Aerospace, Messerschmitt-Bolkow-Blohm, Aeritalia, Construcciones Aeronauticas) of the four nations, and will be the prime contractor responsible for the whole weapon system including integration of the avionics and the engine system.

Mr. Teddy Taylor

To ask the Secretary of State for Defence what changes he proposes in his defence programme to accommodate the £1.7 billion development cost of the European fighter aircraft development within the planned expenditure totals published last autumn; and if he will make a statement.

Mr. Sainsbury

When the public expenditure totals for defence were set last autumn, the probable need was already recognised to provide for the development cost of EFA. Only a small proportion of the total development cost falls within the public expenditure planning period. We do not, therefore, propose to make changes to the defence programme for those years as a result of the decision which my right hon. Friend announced on 25 April. The period of highest expenditure on EFA is expected to be around the turn of the century, but the defence programme for those years is, of course, at only a preliminary planning stage and will be shaped reflecting the priority accorded to EFA.

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