§ 45. Mr. LEACHasked the Prime Minister what steps, if any, have been taken to ratify his pledge of last May that there shall be no profiteering in the armaments industry; and whether he is satisfied that the present share speculation and inflation does not violate the terms of his pledge?
§ The PRIME MINISTERI would refer the hon. Member to statements made by my Noble and right hon. Friend the Secretary of State for Air in June and July last, of which I am sending him 30 copies, as to the steps taken to secure that excessive profits are not made in regard to orders placed in connection with the expansion of the Royal Air Force; and to the reply which I gave on Thursday last to the hon. and gallant Member for Nuneaton (Lieut.-Commander Fletcher) when I said that appropriate steps would be taken to ensure that excessive profits are not made in the orders which will be placed to make good deficiencies in the Defence Forces. As regards the second part of the question, His Majesty's Government are determined to give effect to the undertaking that excessive profits are not made on armament contracts; but they cannot accept any responsibility for the movements of share prices on the Stock Exchange.
§ Mr. LEACHHas the Prime Minister no concern whatever with this gross public scandal; and will he not take the appropriate means of putting an end to this gambling, by bringing the important industry of armament-making under public ownership and control?
§ Sir W. BRASSIs it not a fact that the rise in the price of shares makes absolutely no difference to the cost of production?
§ Mr. ANEURIN BEVANWhen the right hon. Gentleman makes reference to "appropriate measures" what does he mean?
§ The PRIME MINISTERThe measures that have been taken, so far, in the limited expansion which has been made, I believe to be satisfactory. The House will have the opportunity, on the pertinent Estimates, of debating that matter. We have, as the House is aware—and they will be told more details presently—a very great problem, in which we desire the co-operation of the whole House, in expansion, that will. have to be met in the next four or five years and, as we go on to meet those conditions, one of our greatest problems will be to consider whether such measures as we have taken hitherto Rill be sufficient. If we think they are not sufficient, we shall certainly suggest others.
§ Mr. LEACHMay I press the Prime Minister? Will he take no steps whatever to meet this grave public scandal?
§ Mr. A. V. ALEXANDERWill the right hon. Gentleman take care, in order to retain public confidence, not to give way to pressure to put in charge of this kind of work, industrial magnates who have profited much in the past from subsidies of the Government?
§ Mr. HOLMESIs it not a fact that armament and aviation firms are to-day not making profits out of the arms and areoplanes which they are supplying to our own country, but out of those which they are making for other people?
§ 49. Mr. GARRO-JONESasked the Prime Minister whether the insertion of a costings clause in armament supply contracts is the sole safeguard contemplated by the Government against excessive profits?
§ The PRIME MINISTERNo, Sir.
§ Mr. GARRO-JONESIs the Prime Minister in a position, in order to allay public anxiety, to specify what other measures will be taken?
§ The PRIME MINISTERNo, Sir. I think I am not prepared at this moment to amplify the answer which I gave to the hon. Member for Ebbw Vale (Mr. Bevan) a few minutes ago, and I would say, with great respect, to the hon. Member, in the words of one of his former leaders, that he should "wait and see."
§ Mr. HARDIEMay I ask the Prime Minister, since it has been proved already that in this so-called tension, huge profits have been made by swindling or any other term you care to give it—
§ Mr. SPEAKEROrder.