56. Mr. MacCALLUM SCOTTasked the Secretary to the Treasury whether he is aware of the terms of the maintenance 206 contracts made by the Board of Works with contractors in Glasgow, whereby the contractor is to supply labour in day work in consideration of a payment by the Commissioners of His Majesty's Works and Public Buildings of the amount actually paid in wages to the men with an addition of 6¼ per cent. in respect of services and expenses; whether he is aware that in the case of one contractor in Glasgow the wages amount roughly to £2,000 per year, so that the 6¼ per cent. out of which the contractor must pay workmen's compensation, third-party risk insurance, and the maintenance of the necessary scaffolding, tackle, tools, etc., amounts to about £125 per year; whether he is aware that the insurance contributions which, under the Act, must be paid by the contractor, amount to a total of about £1 per week, or £50 per annum, which represents the whole of the profit on the contract; whether the Board of Works has submitted the whole case of the effect of the Act on these special contracts to the Treasury, and the Treasury have refused to grant permission to the Board of Works to grant relief to the contractors by varying existing contracts, or otherwise; and whether, in view of the fact that the contract has been specifically framed in order to relieve the contractor of any risk of a rise in wages or in the cost of labour, and that the Government has by the National Insurance Act materially varied the conditions with a special view to which the contract was framed, the Treasury will sanction such variation of the contract as in the opinion of the Board of Works the equities of the case may demand?
§ Mr. MASTERMANThe question of arbitration in a somewhat similar case to that referred to by the hon. Member is under consideration, and in the circumstances I regret that I should not be justified in making any statement at present.
§ Captain MURRAYWill it be the arbitration which the contract provides for?
§ Mr. MASTERMANI think so, yes.
Mr. MacCALLUM SCOTTDo I understand that this particular case as to whether the Board of Works would have power to vary the contract in view of the operation of the Insurance Act is under arbitration?
§ Mr. MASTERMANA similar case is under arbitration which I think will certainly lead us to a direction of policy in connection with this case.
§ Mr. MASTERMANIf my hon. Friend will put down a question I will inquire.
Mr. MacCALLUM SCOTTDoes the right hon. Gentleman assure me that this particular point comes under the arbitration now in process?
§ Mr. MASTERMANAs far as I understand the arbitration will decide what is practically the question.