HC Deb 05 June 2000 vol 351 cc119-20W
Mr. Gordon Prentice

To ask the Secretary of State for Trade and Industry what conditions were attached to the most recent tranche of launch aid for Rolls-Royce; and if he will make a statement. [124097]

Mr. Alan Johnson

In November 1997 the Department agreed to provide launch investment of £200 million to Rolls-Royce to assist with the development of the Trent series of large aeroengines. The conditions attached to the agreement are commercially confidential.

Launch Investments is a risk and revenues 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 to the Government at a real rate of return, usually via levies on sales of the product developed.

Mr. Gordon Prentice

To ask the Secretary of State for Trade and Industry when he last met representatives of Rolls-Royce to discuss the aeroengine industry, with particular reference to employment levels. [124096]

Mr. Alan Johnson

I visited Rolls-Royce's main production facilities at Derby on 9 May 2000 and discussed a range of issues of importance to the competitiveness of the company. We discussed the implications for employment levels of Rolls-Royce's current review of its strategic operations.