§ Mr. Gordon PrenticeTo ask the Secretary of State for Trade and Industry what conditions were attached to the grant of £530 million to BAe systems in respect of the company's future employment levels in the UK; and if he will make a statement. [131892]
§ Mr. Alan JohnsonConditions in the A3XX launch investment contact, as with all other launch investments, remain commercially confidential.
We estimate that the A3XX will create 22,000 new jobs (8,000 in BAe SYSTEMS and the UK supply chain, and 14,000 new induced employment) and safeguard a further 62,000 jobs (20,000 on current Airbus programmes and 42,000 in induced employment).
Launch investment is a risk and revenue sharing Government investment in the design and development of specific civil aerospace projects in the UK. The investment is not a grant and is repayable at a real rate of return, usually via levies on sales of the product developed.