§ 86. Mr. O'GRADYasked the Minister of Munitions whether there is a system in operation by which contractors manufacturing munitions are paid a percentage on material used and a percentage on wages paid; and, if so, will he, having regard to the fact that such a system involves waste and enhances the cost of production, take steps at once to cancel such system?
§ Dr. ADDISONThere is no such system in operation in the Ministry of Munitions. I fully appreciate the objections to such a system. At the same time it is occasionally necessary to make payments on a percent- 849 age basis in the case of orders for the manufacture of articles of an experimental or other special character in which no firms have experience of the processes involved. The number of such cases is comparatively negligible, and in no case are they approved without special investigation.