HC Deb 12 March 1951 vol 485 cc1033-5
2. Mr. Watkinson

asked the Minister of Supply if he will make a statement on the procurement of machine tools from the United States of America and European countries.

Mr. G. R. Strauss

Orders for the defence programme have been placed on suppliers in the United States and in Western Europe to a value to date of approximately £40 million.

Mr. Watkinson

Is the Minister satisfied that great care has been taken to dovetail these orders so that our production and what we are buying from abroad will match up?

Mr. Strauss

Yes, Sir. That matter has been and is giving us very considerable concern, and I think we are doing what is necessary.

Mr. Snow

Will my right hon. Friend be very careful indeed to keep in touch with the American end of the supply line, since there is some doubt in industrial quarters whether by virtue of American increased production we are getting all the supplies we want?

Mr. Strauss

Yes, Sir. That is again a point that we have very much in mind.

3. Mr. Watkinson

asked the Minister of Supply the number of machine tools taken from his Department's reserve in the last six months and placed in use in industry.

Mr. G. R. Strauss

Eight hundred and ninety-three machine tools have been withdrawn from Ministry store during the last six months; 424 for immediate use and 469 for reconditioning before use.

Mr. Watkinson

Is it possible to say what proportion that withdrawal bears to the remaining stocks?

Mr. Strauss

It is quite a small proportion, because most of the remaining stocks are special purpose tools that are not suitable for our defence programme.

Mr. Duncan Sandys

Has a very large number of machine tools now required for re-armament purposes been disposed of since the war?

Mr. Strauss

No, Sir.

Mr. Kirkwood

Is it not the case that we are in a better position today to supply all the machine tools we require either now or in the immediate future?

Mr. Strauss

Yes, Sir.

Mr. Summers

For what purposes are these tools in store if they are unsuitable for the re-armament programme?

Mr. Strauss

They are special purpose machines that were mostly used for equipment required during the last war but which are not now required according to the demands given us by the Service Departments.

Mr. Summers

Would it not be reasonable in that case for them to be sold?

13. Mr. Alport

asked the Minister of Supply what steps the Government intend to take to indemnify firms failing to complete their contract for the export of machine tools to the Union of Soviet Socialist Republics or Eastern Europe as a result of the Government's policy for subsequent legal proceedings.

Mr. G. R. Strauss

My Department have informed the machine tool industry that, for completed machines the export of which to Eastern Europe has been frustrated as a result of Government action under the Export of Goods (Control) Order of 6th October, 1950, the Government will indemnify firms against damages and costs awarded as a result of their failure to carry out contracts. No indemnity has been given for unfinished machines but, as the industry is aware, the Government will consider claims on their merits. Any payments by the Government will be conditional upon damages and costs not being otherwise recoverable under a contract of insurance and upon the firms consulting and being guided by my Department in the conduct of legal proceedings.

Mr. Alport

Is the right hon. Gentleman aware that considerable modifications are necessary to many of the machine tools ordered, particularly for Poland, which will not have been finished and for which, therefore, no indemnity will be available? Does he not think that it is a great hardship to the firms concerned that they have to stand the very substantial loss involved?

Mr. Strauss

The hon. Member may not have heard my answer. I said that such claims will be considered on their merits.

Sir Herbert Williams

Do I understand from the Minister's answer that British courts will be available to enable the Soviet Union to sue British firms?

Mr. Strauss

Certainly.

Mr. R. S. Hudson

When was this information communicated to the firms or to the industry? My information is that a short while ago they were not aware of it.

Mr. Strauss

I could not say without notice the day on which the firms concerned were first given this information.

Mr. Hudson

Has the right hon. Gentleman no idea at all—not even a rough idea?