§ Q5. Mr. Ginsburgasked the Prime Minister if he is satisfied with the arrangements for co-ordination between Government Departments in the supply of missiles to foreign Governments, especially so far as prices are concerned; and if he will make a statement.
§ The Prime MinisterYes, Sir. Sales are normally made by the manufacturer, the price and other terms of the contract being negotiated directly between the firm and the foreign Government. The sale of missiles is subject to the grant of an export licence and Government Departments consider proposals in the light of security, strategic, political and economic factors.
§ Mr. GinsburgHas the attention of the Prime Minister been called to questions on the Bloodhound issue in the Swiss Parliament? Have representations been made from the Swedish and Swiss Governments to the British Government? Would he agree that the excessively high profits at home made on missiles have the effect of damaging our trading reputation abroad?
§ The Prime MinisterOn the latter point, I remind the hon. Member that these sales to foreign Governments are made in the face of the fiercest competition, almost always, and there is available a choice for foreign Governments. As to representations, we have not had any from these Governments, although I have seen an account of the question and answer in the Swiss Parliament.
§ Lord BalnielIs my right hon. Friend aware that the aircraft industry has exported missiles and aircraft equipment to the value of £840 million in the last five years? Many thousands of my constituents who work in this industry are not so worried about competitive efficiency, because they can hold their own in world markets. What they are really worried about are the proposals of the Opposition to nationalise the industry.
§ Mr. W. HamiltonIs the right hon. Gentleman not aware that there have been discussions in the Swiss Parliament about the extortionate profits made by Ferrantis on the Bloodhound project and that the Swiss Government know that the British Government are negotiating for a payment back from Ferranti's of part of that £5 million profit which Ferranti's made? If representations are made by the Swiss Government and by the Swedish Government to the right hon. Gentleman and his Government for copies of the Ferranti report as they seek to negotiate a reduction in prices, will he consider these matters?
§ The Prime MinisterThe Swiss Government or the Swedish Government can perfectly well make representations if they wish, but I doubt whether they would use the hon. Member as a channel.
§ Mr. HamiltonIn view of the unsatisfactory nature of the Prime Minister's replies, I beg to give notice that I shall raise the matter on the Adjournment.