§ 67. Mr. Tinkerasked the Chancellor of the Exchequer whether he will cause a White Paper to be published defining what steps will be taken to find out what amount of profits are made out of Government contracts that are given out to private firms; and what he considers a fair standard of profit?
§ The Financial Secretary to the Treasury (Captain Euan Wallace)The measures adopted by the Government for regulating the prices to be paid under Government contracts in connection with the Defence programme have been described on several occasions to the Estimates Committee, the Public Accounts Committee and the House. My right hon. Friend does not think it is necessary to issue a White Paper on the subject. It is not possible to lay down a fixed rate of profit 1755 for all contracts; the appropriate rate must vary according to the circumstances of each case.
Mr. TinkersIs the right hon. and gallant Gentleman aware that there is great discontent in the country about these profits, and would it not be as well for the Government and the House to have something issued, and to examine the whole question and see whether there is anything in the charges that are made?
§ Captain WallaceIf the hon. Gentleman considers the answer I have given, I think he will see that the issue of a White Paper would not improve the position in any way.
§ Mr. BellengerCan the right hon. and gallant Gentleman inform us whether a maximum rate of profit is fixed by the Treasury, and, if so, would he care to disclose what it is?
§ Captain WallaceI have already said that it is not possible to lay down a fixed rate of profit for all contracts.
§ Mr. Garro JonesIs the right hon. and gallant Gentleman aware that in the case of one large class of Government con tracts, the prices are fixed by reference to a formula known as the McLintock Agreement, without knowledge of which it is impossible to work out how the price is arrived at, and may I ask——?
§ Mr. Garro JonesIt has always been permitted for an hon. Member to put a postulatory phrase at the beginning of his question, but I want to ask whether this——
§ Mr. Garro JonesBut, Mr. Deputy- Speaker, may I say, with great respect— [Hon. Members: "Order!"]—On a point of Order. Questions of that kind, longer and of the same character, have been allowed the whole day——
§ Mr. Garro JonesIt is unfair. That is what troubles me.
Mr. Deputy-SpeakerI must ask the hon. Member to withdraw that observation immediately. He has accused the 1756 Chair of being unfair. I ask him to withdraw that accusation.
§ Mr. Garro JonesCertainly, I withdraw any reflection upon your immediate Ruling, Mr. Deputy-Speaker, but I do think that if hon. Members are to be allowed——
Mr. Deputy-SpeakerThe hon. Member was asked to withdraw the statement that he made. When he is asked to withdraw a statement he should do so simply and clearly, and not qualify it.