§ 14. Mr. Wiggasked the Minister of Aviation if he will state the dates on which Messrs. Ferranti Limited were made aware by his Department that the Comptroller and Auditor General was inquiring into the prices fixed for the supply of Bloodhound missiles, that the Comptroller and Auditor General was of the opinion that the prices fixed were excessive, and that the sum total of the amounts included for direct labour and overheads in the agreed prices, relating to production up to 31st March 1961, exceeded by 70 per cent., or £2.7 millions, the total direct labour and overhead cost for that period as finished by his department's accountants; and by whom the information was supplied in each case.
§ Mr. AmeryMessrs. Ferranti Limited were first told orally of the nature of the audit query on 29th August, 1963. An official letter was sent to the Company on 15th October.
§ 30. Mr. Stonehouseasked the Minister of Aviation what measures were taken by his Department to check the payments made to Messrs. Ferranti Ltd. in respect of the Bloodhound missiles contract.
§ Mr. AmeryPrices under the contract with Messrs. Ferranti were agreed after investigation and report by the Ministry's technical costs officers on the prime costs of labour and materials, and by the Ministry' accountants on overhead148W rates. Payments were made in accordance with the contract.