§ Mr. GibbTo ask the Secretary of State for Trade and Industry (1) what rate of return the Government expects to receive on the proposed loan to BAe Systems to develop the A3XX super jumbo jet, including the(a) applicable royalty rate and (b) interest rate; [118263]
(2) if he will provide the repayment schedule of the proposed loan to BAe Systems. [118261]
§ Mr. Alan JohnsonThe detailed terms of the launch investment provided to BAe Systems for the A3XX are commercially confidential.
§ Mr. GibbTo ask the Secretary of State for Trade and Industry what information was supplied to the United States Government under the 1992 Civil Aircraft Agreement in respect of the £530 million proposed loan to BAe Systems. [118262]
§ Mr. Alan JohnsonWe have provided to the European Commission all the information required by the 1992 Agreement. It is for the Commission to transmit this to the United States Government.
§ Mr. GibbTo ask the Secretary of State for Trade and Industry if he will list the Government's launch aid criteria for the proposed loan to BAe Systems. [118258]
§ Mr. Alan JohnsonAny applicant for launch investment must demonstrate that the project is technically and commercially viable; that Government investment is essential for the project to proceed in the UK on the scale and in the timescale specified in the application; and that the Government will recoup the investment with a fair share of reward for the risks they have borne. The applicant also has to prove that the investment will bring a significant strategic benefit to the UK that would not otherwise be available.