§ Mr. HART-DAVIESasked the Secretary of State for War, whether the practical monopoly enjoyed by Messrs. Cox and Company of drawing the pay and pensions of the officers of the British Army was due to expire on 31st December, 1911; whether the War Office would, before making fresh arrangements, invite tenders from other banks stating the amount of premium they would be willing to pay for the privilege; or whether, if this practical monopoly was again bestowed upon Messrs. Cox and Company, the War Office would see that an adequate sum was paid by them for this privilege, and due security taken from them for the safety of the sums entrusted to them?
§ The SECRETARY of STATE for WAR (Mr. Haldane)The agency business of the Army is distributed between Messrs. Cox and Co., Messrs. Holt and Co., and Sir Charles R. McGrigor, Bt., and Co., and their agreements due to expire on 31st December, 1911, have already been extended for a further period of 20 years. Under these agreements they perform free of charge a large amount of army accounting work. I may add that these firms furnish adequate security.
§ Mr. HART-DAVIESMay I ask whether it is necessary that an arrangement should be made two years before the present arrangement comes to an end?
§ Mr. HALDANEwas understood to say: The arrangement is quite of a special character and has to be made well in advance.
§ Mr. HART-DAVIESMay I ask whether the right hon. Gentleman is aware that other banks would have been willing to tender for this business, which is practically a monopoly?
§ Mr. HALDANEThe business has been extremely well done in the past. The arrangement which has hitherto been in force has been extremely convenient to the officers concerned.