§ Lieut.-Colonel Bolesasked the Minister of Aircraft Production, to what extent work is still being done for his Department on the old basis of cost plus 10 per cent.
§ Lieut.-Colonel Moore-BrabazonLess than 2 per cent. in number and 3.5 per cent. in value of the contracts placed by my Department in 1941 were on a cost plus percentage basis. This type of contract is used only when it is impossible to estimate the extent or cost of the work to be done, such as in repairs, and the profit allowed is not 10 per cent., but averages about 5 per cent. I regret in answering a supplementary Question of my hon. Friend the Member for Caerphilly (Mr. Ness Edwards) the other day, this point was not made clear. When cost-plus-profit contracts are unavoidable, endeavour is always made to arrange a fixed sum for profit rather than a percentage.