HC Deb 10 April 1963 vol 675 cc1256-7
14. Mr. Reynolds

asked the Civil Lord of the Admiralty what changes in the financial and contractual procedures in relation to research and development contracts have been made as a result of the recommendations made by the working party appointed in May, 1960.

Mr. C. Ian Orr-Ewing

The working party reported in December, 1962. Decisions on the recommendations have not been taken yet by the Board of Admiralty. I hope, however, that we shall conclude our consideration very shortly and I will then write to the hon. Member.

Mr. Reynolds

In view of the suggestions made in the Report of the Auditor-General which led to the setting up of the working party, which was set up three years ago, may we have an assurance from the hon. Gentleman that things will really move a bit faster in this matter, because large sums of money are involved and it is essential to do something to try to cut down possible excess of expenditure on various aspects of the work?

Mr. Orr-Ewing

I agree. Equally, however, I think that the hon. Member would agree that the control of research and development is an immensely complicated problem. We have twenty-two research and development establishments in which over 7,000 people are employed and total annual expenditure amounts to £26 million. The matter must, therefore, be seen in perspective. It is an extremely intricate problem to solve.

Mr. Emrys Hughes

As yesterday the Prime Minister said that the Government were hesitating about the expenditure of £90 million for a Scottish power station, is it not time the Admiralty considered this huge, astronomical expenditure on something which is likely to be obsolete and not so useful as a power station?

Mr. Orr-Ewing

I feel that most of the country would think that the defence of our country was the greatest necessity of all.

Mr. Emrys Hughes

In view of the unsatisfactory nature of the reply, I give notice that I will raise this matter on the Adjournment.