§ 50. Mr. E. Smith
asked the Chancellor of the Duchy of Lancaster the number of shadow factories that have been erected up to date; what management fees are paid; how many are working to full capacity; and what arrangement has been made with the firms for management?
§ Mr. W. S. Morrison
Thirty-one shadow factories have been constructed or are under construction. Such factories were originally designed primarily for production in war though, by reason of the expansion of the Government programme it has been necessary to make very material employment of them in peace, and of the 16 for which the Air Ministry is responsible 11 are working to full normal capacity and another nearly to that capacity. The general principle is that full managerial responsibility rests with the managing firms to engage staff, purchase material and organise production on normal commercial lines. The arrangements with the firms vary according to the nature of the factories and the conditions of working.