§ 47. Sir ARTHUR MARKHAMasked the Prime Minister whether Sir William Smith, who recently retired from the position of Superintendent of Construction Accounts and Contract Work, and has now been appointed a director of Messrs. Armstrong, Whitworth has, for many years, had official business relations with this firm; and, seeing that, notwithstanding the high esteem in which Sir William Smith is held, this is a case where the public interest might be adversely affected, whether he will make a declaration that public servants should not, in the opinion of His 1001 Majesty's Government, accept paid offices with business firms with whom they have been associated while in the public service, unless specially sanctioned and approved by the Minister of each Department responsible to Parliament?
§ The PRIME MINISTERSir William Smith, I am informed, has not been appointed a director of Messrs. Sir William G. Armstrong, Whitworth, and Company or to any position of executive authority in the firm. He has simply been retained by the firm for the purpose of rendering it professional assistance on any point on which it may desire his services. This position was not offered to or held out to Sir William Smith in any way for some months after his retirement from the Admiralty; and during the time that he held the position of Superintendent of Construction Accounts and Contract Work he had simply charge of the technical matters relating to the construction of ships by private firms, and in no way was he officially concerned with the placing of contracts with private firms. As regards the last part of the question, the Treasury has no legal right under existing powers to prevent acceptance of such positions by public servants who have retired from the service. So far as I am aware, there is already a proper disposition on the part of public servants to communicate to the Minister concerned their intention to take up outside employment on their retirement from the public service.
§ Sir A. MARKHAMIs the Prime Minister aware that the Colonial Secretary made a statement to the House last week that, in his opinion, it is not desirable that Governors should accept directorships in companies associated with the Colonies in which they have held administration?
§ The PRIME MINISTERI am quite aware of that, and I quite agree.
§ Sir A. MARKHAMThat is exactly the question I have on the Paper. I asked whether His Majesty's Government would make a declaration to the effect that it is undesirable that public servants should accept paid offices with business firms with whom they have been associated while in the public service?
§ The PRIME MINISTERThat must depend upon the particular case, and I think the case referred to by my hon. Friend shows that the mischief to which he refers has not in fact occurred.
§ Sir A. MARKHAMI will put further questions on the Paper showing that a great number of officers who have been connected with the Admiralty have accepted directorships?
§ The PRIME MINISTERI will consider them.
Mr. MacCALLUM SCOTTMay I ask whether it is in the power of the Admiralty to withhold contracts from firms indulging in this practice?
§ The PRIME MINISTERThe Admiralty have perfect freedom to give their contracts where they like in the public interest.