§ Mr. Teddy TaylorTo ask the Chancellor of the Duchy of Lancaster what is the nature and extent of Her Majesty's Government's commitment to the Airbus project; and what is the total sum so far committed to the project by way of grants or loans to(a) British Aerospace plc and (b) other companies and bodies.
§ Mr. Atkins[holding answer 1 February 1988]: Her Majesty's Government are committed to promote the success of Airbus Industrie projects which are the subject of its arrangements with those Governments. Under principles of co-operation established in 1978 with the Governments of France and Germany, Her Majesty's Government fully support British Aerospace's participation in Airbus Industrie and stand behind the discharge by British Aerospace of its financial obligations to Airbus Industrie.
The Government will provide up to £700 million in launch aid to enable British Aerospace to participate in the A320 and A330–A340 projects.
In addition, £60 million launch aid has been paid to Rolls-Royce in connection with the development of the V2500 engine, which is intended for use with Airbus aircraft: and a total of approximately £4.25 million has been made available in selective financial assistance to suppliers of equipment to the Airbus programme.