ADMIRAL FIELDI beg to ask the Secretary to the Admiralty whether the Lords Commissioners of the Admiralty have sanctioned a contract with Messrs. J. and G. Thomson, on the Clyde, for the building of the new large cruiser Terrible; whether other shipbuilding firms of standing and eminence were invited to tender for this vessel; and, if not, why was the ordinary rule in such cases departed from by their Lordships; and what are the terms of the contract as to amount and time for completion?
SIR U. KAY-SHUTTLEWORTH(1) The contracts for building the Powerful and Terrible have been placed with the Naval Construction and Armaments Company at Barrow, and Messrs. J. and G. Thomson, at Glasgow, respectively. (2) Ten shipbuilding firms (eight being 1329 engineering also) and 12 engineering firms (including eight, also shipbuilders) were invited to tender for a cruiser of the Powerful class. When the tenders came in the Board of Admiralty decided to order two ships, and the two contracts were placed with the firms whose terms were most satisfactory. (3) The cost of each ship will appear in the coming Estimates. The time for completion is three years.
ADMIRAL FIELDMay I ask whether the estimates tendered by the respective firms were equal in amount?
SIR U. KAY-SHUTTLEWORTHThe amounts were all low and were very near each other. The two tenders which gave the most favourable terms to the Admiralty were accepted.
§ MR. J. BURNS (Battersea)Will hon. Members have an opportunity of seeing the whole of the tenders?
SIR U. KAY-SHUTTLEWORTHNo, Sir; that is quite unusual. It is not always fair to competing firms to take that course.
§ MR. J. BURNSDid the lowest tenderers get the two ships?
SIR U. KAY-SHUTILEWORTHI have stated that the two firms which offered the most favourable terms to the Admiralty were accepted.
§ MR. A. C. MORTONWhy were not the tenders advertised for in some public newspapers in the same way as other tenders for public contracts?
SIR U. KAY-SHUTTLEWORTHThe reason is that in certain kinds of Admiralty work, not restricted to the building of ships, it is thought that the best course is to invite tenders from selected firms known to be capable of doing the work. This principle was held to be applicable to exceptional cruisers like these. For other purposes tenders are advertised for in the usual way.
§ MR. WRIGHTSON (Stockton-on-Tees)May I ask whether the conditions under which the different firms contracted were the same?