§ 63. Mr. WATTasked the Secretary to the Admiralty whether he has had any complaints from shipbuilders in Scotland as to the slow payments of his Department; and will he say whether there are any cases of shipbuilders there having rendered their accounts more than twelve months ago for work completed and not yet having received payment?
§ The PARLIAMENTARY SECRETARY to the ADMIRALTY (Dr. Macnamara)Complaints have been received from time to time of delays in payment, and this, I am afraid, is inevitable in the circumstances. Owing to the fact that a large quantity of work has had to be placed on the net cost and percentage system, some delay has necessarily taken place in arriving at a final settlement of claims, but arrangements have been made under which contractors receive from 75 per cent. to 90 per cent. of the amount of their claims for work done under this system within a short period after rendering them. It is not considered possible that claims could be in office for twelve months with-out the contractors receiving, at least, a substantial payment on account. Ship-builders under the ordinary firm price con-tracts receive payments on account at intervals of from a week to a fortnight.