HC Deb 18 January 1967 vol 739 c408
11. Mr. Goodhew

asked the Secretary of State for Defence how much has been paid in compensation for cancelled military contracts from October 1964 to the present time.

Mr. Mason

Something less than £3 million has been paid in compensation for unavoidable terminal costs due to cancellations. In addition, full payment has been or is being made for equipment delivered or in course of manufacture, and materials and equipment obtained for the purposes of the contracts prior to cancellation.

Mr. Goodhew

Why was the right hon. Gentleman so coy about giving this information to his hon. Friend the Member for Blaydon (Mr. Woof) last November? Can he tell us whether these cancellation charges are included in the costs which are now to be given for aircraft to replace those cancelled?

Mr. Mason

No, the £3 million is an addition.