asked the Secretary of State for Industry if he is satisfied with progress to date on the allocation of funds for the development of the L-SAT satellite transmission system.

Yes. As my hon. Friend the Minister for Information Technology announced on 2 November 1981, the United Kingdom has taken a one-third share in the European Space Agency's £230 million programme to develop a large communications satellite, L-SAT; British Aerospace will be prime contractors. I am pleased to report that work has since commenced as planned following equivalent declarations by our ESA partners in this programme.