§ 10. Mr. Gregor Mackenzieasked the Secretary of State for Defence what plans he has for increasing the number and value of contracts placed with firms in development districts.
§ Mr. HealeyMy Department is fully aware of the need to stimulate production in development districts and to make the maximum use of their labour and capacity. We follow the same procedure as other Government Departments in allowing some preference to such firms. I hope that firms in development districts will take full advantage of these arrangements and that the steps the Government are taking to assist industry in these district will enable them to win an increasing proportion of Government contracts in future.
§ Mr. MackenzieI thank my right hon. Friend for that reply. Is he aware of the disappointment that exists about the low proportion of Government contracts from the Ministry of Defence placed in development districts, particularly in Scotland? Will he have a look at the Government preference scheme to ensure that it may really be regarded as a preference scheme?
§ Mr. HealeyI know that there is anxiety in development districts about this and other matters. I assure my hon. Friend that we will do everything possible to increase the proportion of contracts which go to the development districts. However, I do not think that the House as a whole would wish the Ministry of Defence to pay a large additional premium for equipment which it could buy more cheaply in other parts of the country. As I say, I hope very much that firms in the development districts will 1557 take advantage of the special opportunities which they are granted under Government procedures to tender not only in the first instance for contracts but also to re-quote for part of an order which is already allotted, but at a price which would not involve Departments in greater expense by having to refuse acceptance of the lowest tenders received?