HC Deb 25 March 1964 vol 692 cc458-60
27. Mr. Shinwell

asked the Minister of Aviation what has been the financial loss sustained by the cancellation of projects concerned with missiles and aircraft since 1952.

Mr. Amery

I have nothing to add to the answer I gave to the hon. Member for Loughborough (Mr. Cronin) on 17th June, 1963, of which I am sending the right hon Member a copy.

Mr. Shinwell

I have not seen that Answer. Can the right hon. Gentleman tell me the total? Can he also say whether, since last June, there have been other cancellations of projects? Who is responsible for cancellations? Is it the Ministry? If so, are those responsible to be surcharged?

Mr. Amery

I have not got the total here. The figures are set out in a table which the right hon. Gentleman will be able to see in the circulated statement. The decision is, of course, taken by the Government as a whole. I am aware of no cancellations since June.

Mr. Shinwell

If the right hon. Gentleman refers me to an Answer given previously, presumably he has that Answer before him. I am merely asking for the total amount. Has he not that in front of him?

Mr. Amery

The Answer does not give the total but lists each item. I would not wish to weary the House by counting up the sums listed.

Sir J. Eden

Can my right hon. Friend give any comparison with the experiences of other countries regarding the cancellation of projects like this? Would not he agree that it is insufficient merely to consider cancellation of projects? Should we not also have regard to the value of our exports, the value to developments in other industries and also the value of all those projects—both missiles and aircraft—which are in service? Would not this give one a much more balanced account of the success of the British aviation industry?

Mr. Amery

The proportion of cancellations in this country has been considerably smaller than in the United States. When the right hon. Member for Easington (Mr. Shinwell) asked for certain detailed information it never occurred to me that he was criticising cancellations. It is much better to begin projects and cancel some than not begin at all.

Mr. H. Wilson

Since the right hon. Gentleman has not got the total sum with him and apparently cannot tot[...] up the answer, would it help if I informed him that a simple tabulation by arithmetical methods gives a figure of £239 million?

Mr. Amery

The figures advanced by the right hon. Gentleman's colleagues in the last aviation debate make me hesitate to accept his now.

Mr. Lee

Following the answer to my right hon. Friend the Member for Easington (Mr. Shinwell), is it not the case that since last June we have had the cancellation of the T188 at a cost estimated at £20 million?

Mr. Amery

This is another typical example of the hon. Gentleman's characteristic tendency to misrepresent the facts. We have not cancelled T188. All we have done is to terminate the programme. [Laughter.] What we have done is to terminate the programme somewhat earlier than was previously foreseen, but not before we had learned very many lessons from it. It is all very well for hon. Members to laugh, but there is no question of cancellation. Our decision has been based on the fact that further expenditure would not pay off. The expenditure so far incurred has given a reasonable return.

Mr. Shinwell

On a point of order. Might I give you notice, Mr. Speaker, that I might catch your eye on the Adjournment tomorrow to enable the right hon. Gentleman to give the full amount after he has inspected the details?

Mr. Speaker

Yes. I have received notice. I can give no encouragement.