§ Mr. ColvinTo ask the Chancellor of the Duchy of Lancaster what progress has been made in the review of support for civil aircraft and aero engine research.
§ Mr. AtkinsIn the White Paper "DTI—The Department for Enterprise" (CM 278, January 1988) my right hon. and noble Friend the Secretary of State for Trade and Industry announced that the Government intended to review during 1988 the Department's support for civil aircraft and aeroengine research and demonstration.
A comprehensive review has now been carried out by officials of my Department and implementation of the recommendations is under way. It concluded that there is a continuing need for the Government to fund research in support of the United Kingdom civil aircraft industry in view of the particular circumstances of this international market. At the same time, the review recommended that the Government should seek measures in the international arena to reduce the market distortions which play their part in making such Government support necessary. We are considering further how to take this forward.
As a result of the review, we shall be taking a number of steps and introducing procedures that are designed both to bring the support in line with wider Government and departmental research objectives and to ensure that we obtain good value for money from the funding. These include withdrawing near market support and encouraging more collaborative research. Because of the particular nature of the industry we shall continue, exceptionally, to make available support for longer-term single company research projects in the airframe, aeroengine and helicopter sectors, limited to a maximum funding of 25 per cent. of total project costs. Also, for research carried out 472W either in Government research establishments or agencies, we shall in future expect aerospace companies, as major beneficiaries of the work, to contribute to the funding, usually by seconding staff to the research teams.