HC Deb 04 May 1938 vol 335 cc877-8
66. Mr. Garro Jones

asked the Chancellor of the Duchy of Lancaster whether the agents for the shadow factories are to receive as management fees the sum of £220 to £225 per air frame and £75 per engine, irrespective of the type of air frame of engine and with no penalty clause for delays?

Earl Winterton

The management fees for each air frame produced is fixed at £200 or, alternatively, £225 according to the type of air frame. For aero engines it is fixed at £75 irrespective of the type of engine. There is no specific penalty clause for delay, but agreements are terminable on due notice on failure of the agents to carry out their obligations.

Mr. Garro Jones

Is the same price fixed for an engine which costs £1,000 as for one which costs £3,000?

Earl Winterton

This matter is very fully explained in the report of the Comptroller and Auditor-General on the Air Appropriation Account.

Mr. Garro Jones

Is the Noble Lord aware that the report does not state explicitly whether the same price is being paid for an engine which costs £1,000 as for one which costs £3,000?

Earl Winterton

I shall be very glad to deal with this question in extensor in the course of my speech next week.

67. Mr. Garro Jones

asked the Chancellor of the Duchy of Lancaster, what is the fixed management fee paid or to be paid in addition and prior to the £220 to £225 per annum for each airframe and £75 per engine to each of the agents for the shadow factories during the period before production begins; and whether this is an annual or total payment?

Earl Winterton

I would refer the hon. Member to the figures which were supplied in an answer given to him by my right hon. Friend the Minister for Coordination of Defence on 17th February, 1937. For the first year management fees of the amounts therein stated are payable to the firms concerned for their services in respect of erection and equipment of the shadow factories and of the planning of them for production. In subsequent years the managing firms are re-munerated by the fees earned for the production of airframes and engines.

Mr. Garro Jones

Are these fixed payments made only when production commences, or are they paid annually, irrespective of how long it takes to come into production?

Earl Winterton

The whole of the first year is necessarily absorbed in the work of the erection, installation and equipment of the shadow factories.

Mr. Garro Jones

Can I have an answer to the point which I put to the Noble Lord? Is the sum fixed irrespective of when they come into production? If they take 10 years to come into production, do they receive an annual payment of this amount?

Earl Winterton

I am sorry that I have not made it clear. The answer is, "No, Sir."

Mr. Attlee

Is there any check as to the amount of actual attention given to the management of these shadow factories by the firms themselves?

Earl Winterton

Yes, Sir, there is a most complete check.