HC Deb 17 February 1937 vol 320 cc1178-80
50. Mr. Garro Jones

asked the Minister for the Co-ordination of Defence whether he can now announce the terms upon which the groups constituting the shadow aircraft and engine manufacture schemes will operate?

Sir T. Inskip

As the answer is necessarily very long and contains a list of names and a number of figures, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.

Mr. Garro Jones

Having regard to the fact that I previously asked the right hon. Gentleman to give the specific figures which are being paid under the heading of "Management," will he be good enough to abstract those figures and give them to the House?

Sir T. Inskip

The answer is a very long one, and I will send my hon. Friend a copy of it.

Following is the reply:

Arrangements have been made with the following firms for the manufacture of aircraft and aero-engines in shadow factories now being erected and equipped under their supervision:

Of these firms Messrs. Austin Motor Company, Limited, and Rootes Securities Limited will undertake the manufacture under the shadow scheme of air frames as well as aero-engines.

During the first year the firms concerned will be paid management fees of £5,000 for the erection and equipment and planning for production of each of the air-frame factories and of £24,000 in the case of five of the firms, and £20,000 in the case of the sixth, which is only responsible for assembly, for the erection and equipment and planning for production of each of the aero-engine factories.

When production is started the firms will receive management fees calculated at the rate of £225 or £200 per air-frame according to type and £75 per engine. After the first year advances on an agreed scale will be made which will be set off against the management fees earned for the production of air-frames and engines.

Provision has also been made whereby a percentage of any savings in manufac- turing costs below a figure to be determined after a period of initial working should accrue to the firms concerned.

Provision has also been made for the supervision of expenditure both in the erection and equipment of the factories and in manufacture, for the termination of the work on due notice if necessary during the currency of the scheme and for the maintenance of the factories in good running order after the expiration of the production period on terms to be agreed. Certain supplemental provisions in regard to the future use or disposal of the factories and to a number of other matters of detail have also been made.