§ 2. Mr. Boyd-Carpenterasked the Minister of Aviation whether it was a condition of the payment of compen- 478 sation for the cancellation of the TSR2 aircraft that the prototype aircraft and jigs should be destroyed.
§ Mr. StonehouseNo, Sir.
§ Mr. Boyd-CarpenterCan the hon. Gentleman explain, therefore, why the prototypes of this unique aircraft and very valuable machinery have been demolished?
§ Mr. StonehouseThe right hon. Gentleman is under a misapprehension. There are five aircraft. One is being used for instructional use at the College of Aeronautics, Cranfield, and four are being retained for ground research work. The information obtained by the right hon. Gentleman is, therefore, incorrect.
§ Mr. HastingsDoes the ground research work referred to by the Minister involve target practice?
§ Mr. StonehouseI do not want to give details of the ground research work. The parts of the TSR2 which remain are the property of the Government and it is our decision how they should be used.
§ 7. Mr. Hastingsasked the Minister of Aviation whether negotiations on cancellation charges for the TSR2 are now complete; and what sums are involved.
§ Mr. StonehouseNo, Sir. The final amounts to be paid are still the subject of negotiation between my Department and the companies concerned.
§ Mr. HastingsIs it not the case that the compensation takes account of factors of production for two months only after the date of cancellation? Is that not quite inadequate to cover the immense disruption of business which a great many firms have suffered, having people who have been geared principally to the production of TSR2? Will the Minister take account of that?
§ Mr. StonehouseIt is a very complicated negotiation. I am satisfied that the stand which we have taken in the negotiations with the firms concerned is a very fair one.