To ask the Secretary of State for Defence what proportions of defence contracts are placed on a cost-plus basis.
In 1986–87, some 6 per cent., by value, of contracts were placed on the basis of cost plus percentage fee for profit. The proportion has declined from 22 per cent. in 1980–81 and reflects the aim of introducing cost incentives into defence non-competitive contracts.
To ask the Secretary of State for Defence whether he will consider compensation for Mr. Don Pitman, Mr. Jim Smith and Mr. Burgess Cooper for whistle-blowing on excessive profits on defence contracts.
The cases referred to have been carefully considered by my Department and compensation would not be appropriate. My noble Friend the Minister of State for Defence Procurement wrote to the hon. Member on 4 November 1986 explaining the background in some detail.