§ 44. Mr. Diamondasked the Minister of Aviation what steps he has taken to investigate the possibility of excessive 55W payments to Messrs. Ferranti, Ltd. in respect of contracts subsequent to 1st April, 1961; and what conclusions have been reached.
§ Mr. MartenA detailed investigation of contracts with Messrs. Ferranti, Limited other than those for the Bloodhound guided missile has given no indication whatever of similar excessive payments.
An examination has been made of the production contracts for the Bloodhound missile for the period from 1st April, 1961, to 31st May, 1963. Less than one-third of the production in this period has so far been priced. Those prices which have been agreed were based on technical cost estimates produced in the previous period and show similar tendencies to the previous prices. Negotiations with the contractor covering the whole cost of production in this period are proceeding.
§ 45. Mr. Diamondasked the Minister of Aviation what sums Messrs. Ferranti, Ltd has offered to refund in respect of excessive payments for goods supplied by it.
§ Mr. MartenNo specific offer of a refund has yet been made by Messrs, Ferranti, Ltd. but negotiations with the firm are still in progress.