§ 28. Mr. Gallacherasked the Secretary of State for Air what has been the greatest difference during the past 12 months between the target price in Government contracts and the actual finished price; and if in all cases, regardless of the difference, a percentage bonus was paid?
§ Sir K. WoodThe first contracts placed under the target cost procedure are only now approaching completion, and final information as to cost results is consequently not yet available. The target cost procedure provides for a suitable sharing of all savings within the target cost and as the hon. Member will appreciate the bulk of these savings accrues to the State.
§ Mr. GallacherHas there not been a difference of 500 per cent, between the target price and the finished price and a percentage greater even than the profit of 6 per cent, allowed on the commodity?
§ Sir K. WoodThat, obviously, must be incorrect, because my information is as stated in the answer.
§ Mr. GallacherAre there no particular cases of that type which the Minister can get? I have information of that kind. I would like to know also how many Members on the other side are profiting from this matter.
29. Mr. J. J. Davidsonasked the Secretary of State for Air the estimated cost of building work for the Abbotsinch con tract; how many Scottish firms were asked to quote; and whether the tender accepted was the lowest?
§ Sir K. WoodThe estimated cost of the building work at Abbotsinch is £1,000,000. On grounds of urgency it was necessary to dispense with competitive tendering, and nine firms were considered for the work, including one Scottish firm. The order was not given to this firm, but it has been stipulated that the steel work required shall be placed out with Scottish firms nominated by my Department and that Scottish firms should also, as far as possible, be employed for the execution of any further work which it may be necessary to sub contract, and for the supply of materials.
Mr. DavidsonHas not this contract been under consideration for more than six months? How, after such consideration, has the matter become an emergency in which certain firms are not allowed to tender?
§ Sir K. WoodWe had, as I explained last night, to act quickly in this case. That is the reason
Mr. DavidsonCan we have an explanation from the Minister why he has to act quickly in placing contracts after six months' consideration?
§ Sir K. WoodIf a period of six months elapsed it would be all the more reason why we should act quickly.
30. Mr. Davidsonasked the Secretary of State for Air the number of Scottish building firms on the Air Ministry list as direct contractors and the number now engaged on Air Ministry work in Scot land and England, respectively?
§ Sir K. WoodThe number of Scottish building firms on the Air Ministry list is 75. The numbers engaged on work in Scotland and England are 12 and 2 respectively.
§ Mr. Robert GibsonCan the right hon. Gentleman say how many of these Scottish firms are located in Greenock?
§ Sir K. WoodNot at this moment.