HC Deb 21 March 1956 vol 550 c1218
5. Mr. Beswick

asked the Secretary of State for Air in how many cases, other than that of the Comet II aircraft, is the price paid for Service aircraft negotiated by the Minister of Supply.

Mr. Birch

In all cases.

Mr. Beswick

Is the Minister therefore saying that he accepts aircraft without reference to the price? Does he not have any control at all over the amount he has to pay for these machines?

Mr. Birch

As the hon. Member knows, the system is that the Air Ministry states its operational requirements, and from that stage on the matter is taken over by the Ministry of Supply. Of course the price is relevant, because obviously the number of aircraft we can have depends very largely on the price. We take the closest interest in the price, but we do not negotiate it.

Mr. Stokes

If the price is not known, how is the further set-up worked out? Further, is the Minister satisfied that these are on a firm price basis, or are they all cost plus?

Mr. Birch

The right hon. Gentleman should address those questions to the Ministry of Supply, because that is the Ministry which negotiates these prices.

Mr. Beswick

Are we therefore to understand that over that item which is the largest single item in the Air Estimates the Secretary of State has no control at all?

Mr. Birch

As the hon. Member knows, the Secretary of State has no direct dealings with the firm. That is done by the Ministry of Supply.