HC Deb 06 July 1966 vol 731 cc406-7
10. Mr. Edelman

asked the Minister of Aviation what are the arrangements made by the European Launcher Development Organisation for the inspection and control by that Organisation of the purposes to which its funds are applied.

Mr. Mulley

Proposals to incur expenditure on the E.L.D.O. programme are examined in detail by the staff of the Organisation during the preparation of the annual budget. The budget is voted by the E.L.D.O. Council which is composed of representatives of the member countries. Subsequent expenditure is examined and verified by the E.L.D.O. staff and the Organisation auditors. Arrangements to improve control of expenditure are currently under discussion.

Mr. Edelman

Is my right hon. Friend aware that, although expenditure may be examined, there is absolutely no physical control over what happens to the money once it has been allocated, and the French, for example, have accused the Germans of building up a complete scientific and technological infrastructure, using E.L.D.O. funds and diverting them from their original purpose? Is it not desirable that there should be an international committee of estimates to consider this matter?

Mr. Mulley

As I said, proposals for better control have been studied and discussed in recent weeks, and the report of the group is to be presented to the Ministers tomorrow. One of the proposals is to have a corp of inspectors, which, I think, would go some way to meet the point my hon. Friend makes.

Sir G. Nabarro

Is the right hon. Gentleman aware that the British contribution up to 31st March last was £31 million out of a total expenditure by E.L.D.O. of £80 million? In view of the massive sums entailed, can he not give the House an assurance that we here in Britain will in future have reasonable control over future expenditure?

Mr. Mulley

I accept the hon. Gentleman's strictures in the sense that they are directed really at the previous Government for drawing up a most unsatisfactory Convention. The procedures are laid down in the Financial Protocol to the Convention which was drawn up when E.L.D.O. was started. We are trying to make some improvements both as to the amount of our contribution and as to the methods of control.

Sir G. Nabarro

In view of that highly unsatisfactory reply, I beg to give notice that I shall raise the matter on the Adjournment and make further strictures on the Minister.

Mr. Speaker

Order. Notice must be given in the conventional form.