§ 28. Lieut. - Commander FLETCHERasked the Under-Secretary of State for Air whether he can give some examples of the operation of the costings control system in regard to Air Force contracts and of limitation of profits thereby effected?
§ Sir P. SASSOONAs the House has already been informed, prices have not yet been fixed in the case of the great bulk of orders for aircraft and engines under the expansion scheme, but work is proceeding on a basis of Instructions to Proceed. It is impossible, therefore, to give detailed examples, though I may say that in one of the few cases in which a price has been fixed for a substantial order, a reduction of approximately 16 per cent. on the price previously paid for the same article has been agreed with the firm concerned.
§ Mr. BROOKEIs it not the case that the right hon. Gentleman himself has informed the House that a costing system has been in operation for the last 12 months; and can he give us any information now as to what the result has been?
§ Sir P. SASSOONI have done so in my answer.
§ Mr. BENSONAre we to understand that the pledge which was given 12 months ago that there should be a costing system has so far operated only in one case.
§ Sir P. SASSOONAs I said in my answer, very few orders have yet been affected by fixing of prices.
§ Mr. BENSONHave no aeroplanes been ordered in the last 12 months?
§ Sir P. SASSOONI explained yesterday the procedure which we adopt.