§ 67. Mr. GILLETTasked the Secretary of State for Air what was the original amount of the contract given, without competition, in January, 1926, for the construction of the airship R.101; how much of this sum has been expended; and how much in excess of the original estimate has already been paid to the contractor or has been promised to him?
§ The UNDER-SECRETARY of STATE for AIR (Sir Philip Sassoon)The construction of R.101 is being carried out by Government labour and not by contract, and I assume that the hon. Member refers to the contract for the supply of component parts of the framework. This contract, which was placed without competition in view of the fact that only one firm had the particular experience required to enable it to collaborate in work of such highly experimental character, was not for a fixed or comprehensive sum, certain of the elements of the contract price being contingent upon actual costs. The payments due under the contract to date amount to 209 approximately £176,800. On completion, a position which has now been almost reached, the contractors will become entitled to a further payment of approximately £8,000, together with the repayment of certain direct expenditure, estimated not to exceed £4,000.
§ Mr. GILLETTIf there was no definite sum arranged with the directors, how was it that £14,000 was afterwards paid on account of the delay on the part of the Government fulfilling certain parts of this transaction which ought to have been carried out?
§ Sir P. SASSOONThere was no fixed over-all sum.