HC Deb 20 January 1970 vol 794 cc120-2W
Mr. Ellis

asked the Minister of Technology whether he will now make a further report on the discussions with Rolls-Royce in connection with the Bristol Siddeley contracts

Mr. Benn

Yes. I am glad to be able to inform the House that negotiations have now been completed. Rolls-Royce, after consultation with Hawker Siddeley, who owned half of Bristol Siddeley Engines Ltd., before Rolls-Royce acquired it in 1966, have agreed to reduce by £1,600,000 the amount payable by Her Majesty's Government under the aero-engine repair of spares contracts placed with B.S.E.L. for the years 1959–65. The effect of this is to reduce the profit on these contracts to 20 per cent. on costs on the basis of Government accounting conventions. Having regard to the circumstances of these particular contracts—which of course predate the recent agreement between Her Majesty's Government and industry— the Government regard this as a satisfactory settlement of the outstanding issues raised by the Bristol Siddeley case.