§ 19. Mr. Straussasked the Minister of Aviation the general conditions under which research and development contracts are given by his Department to firms in the aircraft industry in respect of repayment out of subsequent sales, financial participation by the firms and safeguards to ensure that the sums provided by his Department are not excessive
§ Mr. SandysThe present arrangements for the sharing by the Government in the proceeds of commercial sales of aircraft developed with Government assistance are set out in paragraphs 26 to 31 of the Third Report of the Committee of Public Accounts for 1956–57, and in paragraphs 17 to 20 of their Third Report for 1957–58.
On civil projects, the Government contribution, if any, is normally a specified proportion of the development costs with a fixed upper limit, leaving the contractor to bear the balance.
§ Mr. StraussCan the Minister say whether there has been any change in Government policy since he has been appointed Minister of Aviation and the new post has been created? It has been suggested in usually informed circles and reported in the Press that the Government are now more willing to pay development costs to the companies that have joined in these various mergers than was the case when the Ministry of Supply was responsible. Is there any truth in this?
§ Mr. SandysI am giving a longish Answer to two Questions on this subject at the end of Question Time.