HC Deb 03 May 1920 vol 128 cc1688-90
32. Mr. HIGHAM

asked the Prime Minister if he is aware that tenders were invited for the National Machine-gun Factory at Burton-on-Trent by the Disposals Board, and that that Board agreed to sell the property to the highest bidder; that tenders were opened at 12 noon on 29th April, and although one firm's offer was one per cent. higher than the next bidder the property was disposed of to the lowest tender; in view of this fact, will he explain why this method of selling Government property is carried on; and will he consider the advisability of reopening the tenders in view of the Government's need of money?

62. Brigadier-General CROFT

asked the Parliamentary Secretary to the Ministry of Munitions whether he is aware that an offer has been made to the Government by a firm to take over the machine-gun factory at Branston and to turn it into a motor car company, guaranteeing to employ 2,000 ex-service men in these works; whether, in spite of the fact that the firm in question entered into negotiations with the Government three months ago, this offer is still being held up; and, if so, whether he will state the reasons for such delay when there is so much unemployment amongst ex-service men?

Mr. HOPE

An offer to purchase the factory at Burton-on-Trent for £550,000 was made by M. Girardot, who said he was prepared to employ 90 per cent. ex-service men if available, of whom not less than 15 per cent. were to be disabled men. This offer was not accepted. but a further offer was made by the Ministry to sell for £600,000, and this was declined on behalf of M. Girardot. Subsequently Messrs. Crosse and Blackwell entered into negotiations for the factory, and tenders were invited both from that firm and from M. Girardot. It was decided that the highest tender made by noon on 29th April should be accepted, subject to the Minister being satisfied that the purchasers were in a position to complete the purchase in accordance with the conditions of the tender.

Representatives of both parties attended at the time fixed with sealed offers, both of which were opened in their presence. The tender made by Messrs. Crosse and Blackwell was £612,856; that made by M. Girardot was £576,000, or one per cent. in excess of any other tender, whichever was the highest. The Minister did not consider that this offer by M. Girardot was a proper tender, and he was, in fact, advised that legally it was not a tender at all, and should be disregarded by him. The Minister therefore accepted the tender of Messrs. Crosse and Blackwell.

I should add that the purchasers promise that they will endeavour to give employment, as far as possible, to ex-service men, and wherever possible to men who have been disabled during the War.

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