HL Deb 11 February 1965 vol 263 cc268-9
EARL FERRERS

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government to state the figure for:

  1. (a) The average annual saving over a period of ten years resulting from the Government's decisions about the aircraft industry, which were announced by the Prime Minister in the House of Commons on February 2, 1965.
  2. (b) The estimated annual cost to the Exchequer of the abolition of the National Health Service prescription charges which came into effect on February 1, 1965.]

LORD SHEPHERD

My Lords, on present costings, without taking into account the early stage of development and the certainty of rising costs of these cancelled aircraft, the figure is £30 million. The figure for the second part of the Question is £25 million.

EARL FERRERS

My Lords, I am grateful to the noble Lord for that reply. Can he confirm that the savings to be effected by buying the American aircraft in no way influenced the decision to do so?

LORD SHEPHERD

My Lords, certainly cost was a factor that was taken into account, but I am quite sure the noble Earl is aware that there were a number of other factors, in particular the gap before this proposed aircraft would come into service, taking into account the going out of service of existing aircraft.

LORD MOYNE

My Lords, can the noble Earl say whether, in calculating the saving, the amount paid out in wages and that to be collected in taxes resulting 'from production in this country were taken into account?

LORD SHEPHERD

I am quite sure the answer is, Yes.

EARL FERRERS

My Lords, I appreciate that there are other factors, as the noble Lord said, but can he say that the savings that resulted from this decision were the result of it and not the cause of it?

LORD SHEPHERD

I think the answer would be, No.