§ 30. Mr. Stokesasked the Secretary of State for Air whether he is aware that all contracts for aircraft are let to a circle of 16 firms who themselves, in agreement with the Air Ministry, place sub-contracts for components; and whether he is satisfied that this arrangement guards the best interests of the public?
§ Sir K. WoodAt the present time, the number of firms holding separate contracts for the supply of complete aircraft for Royal Air Force purposes is approximately double the number suggested by the hon. Member. In the interests of design and efficiency, it is essential that each firm should be responsible for its own production including arrangements for the widespread sub-contracting which is required by Air Ministry policy. I am satisfied that this procedure is in the public interest.
§ Mr. StokesWill the Minister indicate the form of control with which he is satisfied under which these sub-contractors are carrying out the work?
§ Sir K. WoodNo, Sir. I have answered the question on the Paper, and if the hon. Gentleman will put down a question on policy generally I will give him an answer. This question related to 16 firms, who, in fact, place sub-contracts.
§ Mr. Robert GibsonHas the number of firms been recently increased, and, if so, by how many?
§ Sir K. WoodThere has been an increase in the last 12 months.
§ Mr. Benjamin SmithCan the right hon. Gentleman say what control the Ministry has over the sub-contracting firms to the original firms which hold the contract and can he say whether he has any power of supervising their profit?
§ Sir K. WoodPerhaps the hon. Member will put that question on the Order Paper.
§ 31. Mr. Stokesasked the Secretary of State for Air whether the revision of the McLintock agreement has now been completed and when that revised agreement will be available for the information of Members of this House?
§ Sir K. WoodAs I informed the hon. Member for Southwark Central (Mr. Day) on 26th May, negotiations in this matter are proceeding.
§ Mr. StokesCan the right hon. Gentleman give us any idea when these negotiations will be completed?
§ Sir K. WoodI am hoping that they will soon be completed.