44. Mr. MacCALLUM SCOTTasked the Financial Secretary to the War Office if he will give the names of the manufacturers who have been selected to supply jam to the Army without the contracts being put up to competitive tender?
§ Mr. FORSTERI will circulate the names in the OFFICIAL REPOET. [See Written Answers.]
§ Mr. FORSTERThe hon. Member will see the number when he sees the names to-morrow. Speaking from memory, it is eight or nine.
Mr. SCOTTDoes not the hon. Gentleman think this is an extraordinary departure from sound business methods in giving out contracts that they should be limited to eight or nine firms, and there should be no outside competition?
§ Mr. FORSTERYou have to do a good many things which are extraordinary in time of war. If the hon. Member really takes an interest in the matter and will come to the War Office lie shall see everything that bears on the question.
Mr. SCOTTDoes the hon. Gentleman suggest that it is necessary as a measure of war that this contract should be confined to seven or eight firms without any outside competition?
§ Mr. FORSTERIf the hon. Member will come and look into the question himself he will see how advantageous the arrangement is.
§ Mr. G. FABERHave you the specification?
§ Mr. FORSTERIn reply to another question to-day or to-morrow I am undertaking to put a copy of the contract in the Library.
53. Mr. SCOTTasked the Financial Secretary to the War Office if he can state the amount spent on jam for the Army during the last financial year?
§ Mr. FORSTERAbout £2,000,000.
57. Mr. SCOTTasked the Financial Secretary to the War Office whether the contracts for the supply of jam to the Army are divided among a selected number of manufacturers without any competitive outside tenders; and will he say what steps are taken to secure that the prices quoted by these privileged firms shall be reasonable and in the public interest?
§ Mr. FORSTERWith regard to the first part of the question I would refer the hon. Member to the answer to his question on the 14th instant. In reply to the latter part of the question, competitive prices for making the jam are obtained from the selected firms, the quantity of jam allotted to each firm being governed by the prices quoted. The cost of the fruit tins and packing cases is controlled by examination of the firms' books.
§ Mr. ASHLEYWill the hon. Gentleman say how the eight or nine firms are selected from the general list of these firms?
§ Mr. FORSTERThe contracts go to the firms whose tenders are considered best, and who are best able to carry them out.
Mr. SCOTTWhen contracts involving £2,000,000 go to seven or eight firms, how can there be anything like a competitive price?
§ Mr. FORSTERI must remind the hon. Gentleman that we are not dealing with an ordinary contract by tender.
§ Sir S. COLLINSIs not one of the chief advantages of the selection that you endeavour to make sure that you secure firms which are able to carry out the contract—firms that are strong enough to carry it out?
§ Mr. FORSTERYes, that is so.
§ Mr. PRINGLEAre there not more than eight or nine firms strong enough to carry out the contract?