HC Deb 29 October 2003 vol 412 cc259-60W
Sir Nicholas Winterton

To ask the Secretary of State for Trade and Industry what representations she has received on BAE Systems relocation of its regional aircraft business to Ayrshire; what funding her Department has provided to BAE Systems plant at Prestwick for employment relocation and creation; and if she will make a statement. [134011]

Jacqui Smith

My right hon. Friend the Secretary of State for Trade and Industry, has received one representation on BAE Systems' relocation of its new regional aircraft business to Prestwick in Ayrshire.

The Department of Trade and Industry has provided no funding to BAE Systems' plant in Prestwick. However, following the company's decision to cease regional aircraft production, the Scottish Executive, having consulted with DTI, offered BAE Systems £2.4 million in Regional Selective Assistance (RSA) to support the consolidation of their Regional Aircraft Support Centre at Prestwick.

Sir Nicholas Winterton

To ask the Secretary of State for Trade and Industry what assessment she has made of(a) the impact of BAE Systems' decision to relocate regional aircraft production from its Woodford Aerodrome in the North West to Prestwick on employment opportunities in the North West of England and (b) the future viability of the aerospace industry in the North West. [134012]

Jacqui Smith

The Department's understanding is that BAE Systems Regional Aircraft has not relocated regional aircraft production from Woodford in the North West to Prestwick in Ayrshire as, with the cancellation of the Avro RJX, the company took the decision in November 2001 to cease all further regional aircraft production activities. A number of different locations were considered before BAE Systems Regional Aircraft decided to place its new Regional Aircraft business, focusing on customer support, engineering and management support, in Prestwick.

As regards the future viability of the aerospace industry in the North West, my right hon. Friend the Secretary of State for Trade and Industry, established the Aerospace Innovation and Growth Team (AeIGT) in May 2002 to produce a 20-year vision for the future of the aerospace industry across the whole of the UK, including the North West of England, and to make recommendations as to how to make that vision a reality. Over 140 senior representatives of aerospace companies, Government Departments and trade unions, as well as universities and research bodies, have been involved. Work is now proceeding on the implementation of the AeIGT's recommendations and a wide range of stakeholders are involved in producing plans to achieve this, both nationally and at local level. The Chairman of the North West Regional Development Agency is a member of the AeIGT and has been, and continues to be, closely involved in its work.

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