§ Mr. Corfieldasked the Minister of Technology (1) if he will give details of the procurement charge being levied by McDonnell-Douglas on British firms making parts for Phantom aircraft on order for the Royal Navy and Royal Air Force;
(2) what is the amount of the uplift charge being levied by McDonnell-Douglas on spare parts manufactured in Great Britain for Phantom aircraft on order for the Royal Navy and the Royal Air Force.
§ Mr. StonehouseThis charge is normal commercial practice and is intended to cover the cost to McDonnell-Douglas of 215W such items as negotiating the sub-contract, administration, testing, and storing the completed equipment. It applies equally to U.S. sub-contractors. For operational convenience the supply of spare parts for Spey/Phantom aircraft during the initial period after delivery is included in the basic aircraft contract on which normal McDonnell-Douglas overhead charges are payable. It is not customary to disclose figures which go towards the make-up of contract prices.