HC Deb 17 June 1935 vol 303 cc18-9
37. Mr. BERNAYS

asked the Secretary of State for Air whether he is now in a position to state the results of the conversations between His Majesty's Government and the aircraft manufacturers with a view to the prevention of undue profit being made out of the expansion of the Air Force; and what steps the Government propose to take in the matter?

36. Mr. T. WILLIAMS

asked the Secretary of State for Air what action the Government are taking to prevent profiteering in air armaments?

Sir P. CUNLIFFE-LISTER

There has been established in the Air Ministry a comprehensive machinery, evolved in consultation with the Treasury, covering the whole range of contracts and providing for the control of prices by technical costings and similar methods. This is, of course, being fully employed. In addition, as the House is aware, the Ministry now have the great advantage of Lord Weir's constant advice, and I hope also to have the assistance of several gentlemen whose past and present experience make them particularly qualified to advise on these commercial and financial questions.

Sir P. HARRIS

Has any scheme been devised for imposing penalties on firms who charge excessive profits? Is there any machinery?

Sir P. CUNLIFFE-LISTER

The whole object is to ensure that one does not have any excessive profit. I am sure the House realise that, dealing with a very complex variety of contracts with differing circumstances in each, it is impossible to lay down hard and fast rules. What you have to do, in the interests of the public and of the industry, is to get the very best advice you possibly can.

Dr. ADDISON

Would the right hon. Gentleman provide the House with a Paper showing the instructions and powers of the officers of his Department appointed to deal with this matter?

Sir P. CUNLIFFE-LISTER

I should like notice of that question. The contracts department functions in a way which is very familiar to the Public Accounts Committee, and I think that probably the evidence given before that committee would give the right hon. Gentleman all that he requires.

Mr. H. WILLIAMS

Is it not the practice of all Government Departments at all times not to pay excessive charges without due authority?

Colonel WEDGWOOD

Are the contracts by open tender confined to a closed list of manufacturers?

Sir P. CUNLIFFE-LISTER

It depends entirely upon the nature of the contracts.