HC Deb 02 February 1953 vol 510 c165W
4. Mr. Osborne

asked the Minister of Supply to what extent the aircraft industry is working on Government orders on a cost plus basis, and at what percentage; and whether he is satisfied that the industry is being run to the maximum efficiency in manpower, materials and money.

Mr. Sandys

Orders for quantity production are in general based on a fixed price. Research and development contracts, the cost of which cannot be reliably estimated in advance, are usually paid for on the basis of ascertained costs. Profit rates vary with the circumstances. The efficiency of the British aircraft industry can be judged from its outstanding success in the markets of the world.