§ Mr. McMasterasked the Minister of Aviation how many aircraft production orders have been placed by the Government in the past 10 years; in how many of these cases the original quotation for the price of production has been revised by the manufacturer; and in how many cases this revised quotation has been refused by the Government in favour of a higher earlier quotation.
§ Mr. AmeryOwing to the high cost of aircraft development it is exceptional for there to be more than one type of aircraft available to meet a particular requirement and it is rarely practicable therefore to have competitive tenders for production aircraft. When more than ore type is available the purchase is normally to a selected design, and the order is placed after consideration of many factors, of which cost is only one.
In the 10 years ended on 31st March, 1964, 152 contracts were placed by my 213W Department for the supply of new aircraft. Only two of these were preceded by competitive tenders. In both cases a tenderer revised his quotation before a contract was placed, but in neither case was the revised quotation accepted.