asked the Secretary of State for Air whether those whom he has appointed to advise him on the prices to be paid for aircraft supplies will be able to inform themselves of the costs of production, as well as of the overhead and general charges of the firms providing the supplies?

Yes, Sir. Where it is considered desirable, a Clause will be inserted in contracts under which particulars of costs may be called for and verified. It is already the practice for the overhead and general charges of the firms concerned to be periodically examined.

Will my right hon. Friend give us an assurance that there will be no waste of money in connection with this programme such as there was in the early days of the housing programme?

I shall do my best to profit by all experience.

Will the right hon. Gentleman, profiting by those lessons, take care to have powers which the Minister at that time did not possess?

I never was aware that the right hon. Gentleman's extravagance was in any way connected with the powers—[HON. MEMBERS: "Order. Withdraw."] Do not let us be so mealy-mouthed. I think the difference between the right hon. Gentleman and myself is that he has a passion for coercion, and I prefer to get effective action by agreement and good will.

Will the right hon. Gentleman's advisers have power to advise him on such operations as took place last week in regard to aircraft shares?

I have nothing whatever to do with aircraft shares.

HON. MEMBERS:

Do not be so mealy-mouthed.

asked the Secretary of State for Air whether any arrangements have been made by his Department to secure economies in the supply of materials, machinery, or other requirements to the different firms responsible for aircraft supplies, or whether the firms are obtaining their requirements for themselves?

Contractors will continue to obtain their own supplies of material, machine tools, etc. Arrangements have been made for them to report any difficulties that they may encounter, with a view to any necessary assistance being afforded by the Air Ministry, in consultation with the Board of Trade. Moreover, it is the practice of the Air Ministry to purchase a considerable number of items of equipment and components in bulk and issue them to the manufacturers for embodiment.

If the right hon. Gentleman is allowing contractors to obtain these supplies for themselves, will he not take into account the enormous economies which would be obtained by a combined method of purchase, thus obviating the waste which he deplores in another Minister at another time?

I think that anyone who has practical experience will realise that this is entirely a matter of practical value in each particular case. Where experience has shown that bulk purchase is the most economical, it is being followed; but it is by no means certain—indeed, I think it is certainly not the case—that a Government Department buying raw material which is bought on a large scale by an individual manufacturer would necessarily, or, indeed, probably, buy much cheaper.

Is it not a fact that there is a very large body of experience available to show the advantage of this central bulk purchase system; and has the right hon. Gentleman's Department any powers to carry out that system?

It is being carried out in those cases where experience shows that it is convenient.

Why has the right hon. Gentleman taken all these unnecessary precautions when he knows that private enterprise is so competent?

Because I am endeavouring to help private enterprise.