To ask the Secretary of State for Defence what communications have taken place between his Department and British Aerospace plc (a) prior to 18 June and (b) since 18 June this year regarding the economic and industrial consequences of the decision not to authorise work on the order for the eighth batch of Tornado aircraft.

We are in constant communication with British Aerospace on a range of topics. The industrial consequences of procurement decisions—18 June 1990, column 771—are a matter for the companies concerned.

To ask the Secretary of State for Defence if he will give details of the costs to his Department, on cancellation charges, of the reduction in the orders for Tornado aircraft announced on 18 June.

There are no cancellation charges as such. Rundown costs will be negotiated with the contractors.