§ 36. Mr. MACMASTERasked the Minister of Munitions what was the cost of the production of the ordinary Artillery shrapnel shell just before the War; what is the cost now; and what is the cost of production in France of the corresponding shrapnel shells used by the French Army in the .75 gun?
§ Dr. ADDISONIn regard to this question, I am glad to be able to inform my hon. Friend that great reductions in the prices of most natures of shell have been obtained. In regard to ordinary shrapnel, owing to its special nature the prices have remained practically stationary, notwithstanding the increased cost of labour and material. After prolonged negotiations on the basis of actual and precise estimates of cost as ascertained by the Cost Accounting Department in national and other factories and with the assistance of local committees, an agreement has been arrived at whereby a reduction in prices in many natures of shell of from 25 per cent. to 30 per cent. has been obtained. This arrangement will secure a saving, as compared with former prices, on the June shell supplies of about £400,000 per week. I should like to take this opportunity of acknowledging our indebtedness to the officers of the Finance and Contracts Departments, and those concerned with the local organisation, for the services they have rendered to the State in this matter. I have no information with regard to the last part of the question.
§ Mr. MACMASTERWhat was the price of production of individual shells before the War and at what time did this reduction take place?
§ Dr. ADDISONI think it is undesirable to state that.
§ Sir R. COOPERIs the House to understand from the hon. Gentleman's answer that there is a reduction of pre-war prices of shells?
§ Dr. ADDISONThere is a reduction on the price previously paid during the course of the War to the extent mentioned in the reply. As a matter of fact, there is also a reduction on pre-war prices as well.
§ Mr. MACMASTERIs it not a fact that the price of production of the corresponding French shell used for the .75 gun is about one-third the cost of production in this country?
§ Dr. ADDISONThat is not quite correct, and, besides, the hon. Member must remember that the French shell is quite different in many respects from ours. All these things must be taken into account when you are comparing one with another. As a matter of fact, you are comparing different things, and the comparison is unfair.
§ Mr. PRINGLEIs there not a difference between the cost of labour here and in France?
§ Dr. ADDISONVery great.