MR. JACKS&c.) (Leith,asked the Secretary to the Admiralty, If it be true that the Government, whilst taking tenders for the building of cruisers lately from various builders, made an exception in favour of a Belfast shipyard, and ordered two vessels, without previously having contracted what the price had to be; and, if it be true, and it be not against the public weal, would he explain to the House the reason for that course?
§ THE SECRETARY (Mr. HIBBERT) (Oldham)It is a fact that the Admiralty, in August last, ordered two gunboats from Messrs. Harland and Wolffe under the circumstances stated in the Question of the hon. Member. The reason for this course was an experiment to test the value of the system of paying the actual cost of wages, material, and other direct expenses, with a due proportion of the fixed and trade expenses of the concern, and a commission of 5 per cent on the whole as the sole remuneration and profit of the transaction. Though the latter terms, which were agreed to by the late Government, are unusual, I am informed that Messrs. Harland and Wolffe have built ships and engines for several important shipping firms and Companies in Liverpool and elsewhere to the value of over £2,500,000 sterling upon this system.