HC Deb 25 January 2000 vol 343 cc196-7W
Mr. Crausby

To ask the Secretary of State for Trade and Industry if he will make a statement about launch investment contracts in the aero-engine sector. [107147]

Mr. Alan Johnson

Under previous launch aid contracts between the Government and Rolls-Royce plc, that company is entitled to a reduction in the amount of levy which it pays in respect of engines which are derivatives of engines which have previously benefited from launch aid, in recognition of the extra investment which the company has made in producing those derivatives. Agreement has recently been reached between my Department and Rolls-Royce plc on the revised rates of levy which are payable on certain derivatives of the RB211–524, V2500, Spey, Tay and Industrial RB211 engines. My Department will be seeking a Spring Supplementary Estimate in due course which will include provision for the repayment to Rolls-Royce plc of certain of the amounts which have been overpaid by that company in respect of these derivative engines.

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