§ Mr. Roger EvansTo ask the Secretary of State for Defence if he will make a statement on the report by the review board for Government contracts on its seventh general review of the profit formula for non-competitive government contracts.
§ Mr. AitkenThe Government have accepted the overall target rate of return on capital employed as recommended by the review board in its report. The new rate will be 19 per cent. compared with the current rate of 21 per cent., both on the basis of historic costs. It will be effective from 1 March this year. There are other points in the report which officials will be discussing with the CBI as part of our continuing drive to secure maximum value for money from our defence contracts. The report is now being printed and copies will be placed in the Library in due course.