§ Mr. Hooleyasked the Secretary of State for Defence if he will list in the OFFICIAL REPORT the Defence Votes for the financial year 1966–67 in which the outturn exceeded or fell short of the sum granted by Parliament by a margin of more than 10 per cent.
§ Mr. HealeySince the Accounts for 1966–67 will not be closed until several weeks from now it is impossible to give a definite reply to the Question. The Accounts will be published in due course. However, on the basis of the most recent information available, surpluses and deficits of more than 10 per cent. are expected on the following Votes:
profits required as an incentive to encourage initiative and economy in production costs by Government suppliers as referred to in paragraphs 7 and 8 of Public Purchasing and Industrial Efficiency, Command Paper No. 3291.
§ Mr. DiamondThe measures referred to in these paragraphs will of themselves encourage initiative and economy. Where-ever possible, Government contracts are let after competition, and in these cases the level of profit is dependent upon the supplier's efficiency. Where non-competitive contracts are let the negotiated price takes account of the present profit formula. The question whether this needs 95W any revision is at present under discussion with industry.