HC Deb 18 November 1936 vol 317 cc1790-1
51 and 52. Mr. GARRO JONES

asked the Minister for the Co-ordination of Defence (1) whether it is the intention of the Government to finance the labour and material in addition to the buildings occupied in production of aero-engines under the shadow scheme; and upon what basis, having regard to the provision by the Government of a large proportion of the capital and the payment by the Government of management charges, the firms concerned will be paid for their output;

(2) whether he will state the amounts to be paid as management fees to each of the seven groups who will manage Government factories for the manufacture of aero-engines?

Sir T. INSKIP

The number of firms included in the shadow engine scheme is now six. The whole of the labour and material and other costs involved in production, as well as the capital expenditure will be met by the Air Ministry. The firms will be remunerated by a management fee which combines an annual payment with a fixed payment per engine. As explained by the Secretary of State for Air in another place, as soon as practicable after production commences a basic price will be fixed by reference to the anticipated cost per engine and the firms will receive as a bonus a share of any saving effected on that basic price. I am not at present in a position to make any further statement as to the financial terms, but in due course full information will be given to the House.

Mr. GARRO JONES

Have the management fees been agreed between the Government and the groups of managers who will manage these factories?

Sir T. INSKIP

Yes. That particular item of the financial terms has been agreed, but I would prefer if the hon. Member will allow me to make a full statement to the House when everything has been finally fixed.

Mr. GARRO JONES

In view of the separate character of the two questions I have put on the Order Paper, why should it be impossible to give the House the information which is already available and which cannot be affected by any subsequent price which may be fixed?

Sir T. INSKIP

I have stated the reason to the House—that it is desirable to give full information when I can give the whole picture.