§ 10. Mr. JOYNSON-HICKSasked the First Lord of the Admiralty (1) whether he is aware that in the early part of the War one Lyman J. Seely, selling agent of 1389 an American aeroplane factory, informed his company that, through the influence in London of an English barrister, he would be able to get a large order for aeroplanes if he were allowed a commission of 15 per cent., as that was the usual rate for such business, in addition to the 1 per cent. which had up to that, date been his previous rate for obtaining orders; and, if so, what steps he proposes to take; and (2) whether he is aware that in certain large orders placed in America for the supply of aeroplanes, there was added to the price a sum of 15 per cent., or one-sixth of the total order, amounting to some millions of dollars, for disbursements in England for securing the Admiralty order; whether various payments on account of these commissions have been made by the vendors to a certain English barrister; what precisely were the services rendered by him; whether the Admiralty has made any inquiry as to the origin and destination of this commission; and whether there was any necessity for paying a price to cover such a commission when the vendors were in direct communication with the Admiralty, and there was both a willing seller and a willing purchaser?
§ Dr. MACNAMARAWe are informed that the gentlemen referred to represented the company in this country and were entitled to receive certain payments or commissions under the terms of the agreements between the company and themselves The agreements, we learn, do not merely deal with agents' selling commissions, but with patent rights and other matters. During the course of an examination of accounts last July, it appeared that payment of commissions to agents to the extent of 16 per cent. of the contract price was being made. We objected and asked for explanations, and further inquiries are proceeding in the States. I should add that in the matter of our inquiries the company is giving us every assistance. I do not wish to prejudge the case one way or another, but it appears to be clear that the payments were made solely to the two persons referred to under the business agreements subsisting between them and their agents in this particular case.
§ Mr. JOYNSON-HICKSWill the right hon. Gentleman make inquiry whether these commissions were paid, as suggested in the question, for influencing business at 1390 the Admiralty? May we take it it is to-be rigorously inquired into? If so, I will postpone any further questions for the-present.
§ Dr. MACNAMARAAn inquiry is now being held into the accounts, in which the company is assisting. The point my hon. Friend puts is certainly one which will be fully gone into; I will give him that assurance.
§ Mr. G. FABERCan the right hon. Gentleman say anything about the barrister mentioned in the first question?
§ Dr. MACNAMARAObviously that is a question which will arise on the inquiry I have promised.
§ Mr. ASHLEYDoes it not mean that if the Government enable the company to pay 16 per cent. to their agents they are paying too much for the aeroplanes?
§ Dr. MACNAMARAI have said I am anxious not to prejudge the question. I do not think I ought to be called upon to answer questions in view of the promised inquiry. The House will have full opportunity of considering on the Report of the Public Accounts Committee.
§ Mr. ASHLEYBut that Committee will not know the facts for eighteen months?
§ Mr. JOYNSON-HICKSMight we not have a small Parliamentary Inquiry into Admiralty contracts, as to which there is a great deal of dissatisfaction?
§ Dr. MACNAMARAI think we had better have the examination of the accounts first, and then I will put the other points to the First Lord.