HC Deb 29 February 1988 vol 128 c407W
Mr. Austin Mitchell

To ask the Chancellor of the Duchy of Lancaster whether he has received representations from British Aerospace or any of the Airbus partners or their Governments that additional launch aid may prove necessary for the A330–A340 programmes following the decline in the United States dollar; and whether such concerns have been aired in recent meetings between the representatives of these Governments.

Mr. Atkins

The United Kingdom Government have agreed to provide up to £450 million in launch aid for the Airbus A330–A340 programmes. Senior representatives of British Aerospace have discussed with my right hon. and learned Friend the Chancellor of the Duchy of Lancaster the effects on their Airbus business of the decline in the value of the dollar. They have not made any request for further launch aid for the A330–A340. Representatives of the United Kingdom Government have not discussed such a possibility at recent meetings with other Governments.

Mr. Austin Mitchell

To ask the Chancellor of the Duchy of Lancaster what assessment he has made of the implications of the United States dollar's fall for the prospects of economic and commercial viability of the A330–A340 projects.

Mr. Atkins

A full assessment of the A330–A340's economic and commercial viability, including the possible effects of exchange rate fluctuations, was made by the Government prior to its offer to British Aerospace of up to £450 million launch aid for these programmes.