§ [The Question was as follows:
§ To ask Her Majesty's Government to state the figure for:
- (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.
- (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 SHEPHERDMy 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 FERRERSMy 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 SHEPHERDMy 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 MOYNEMy 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 SHEPHERDI am quite sure the answer is, Yes.
EARL FERRERSMy Lords, I appreciate that there are other factors, as the noble Lord said, but can he say that the 269 savings that resulted from this decision were the result of it and not the cause of it?
§ LORD SHEPHERDI think the answer would be, No.