§ 41. Major PRESCOTTasked the Minister of Health whether the policy of approving housing schemes under the guild system is still being pursued by the Ministry; whether the private employers' contract contains a Clause penalising him if he exceeds his estimate, and assuring him of a small additional profit if he works below it; whether the guild contract guarantees the workers a five per cent, profit, and makes no provision for any penalty, although their estimated cost may be doubled in working; if he will explain why the guild contract is conceded 6 per cent, for establishment charges, in association with other bribes, as against ½ per cent, in the employers' contract; whether the existing form of guild contract cuts at the very root of economy, and definitely makes for waste of the taxpayers' money; and if it is the intention of the Ministry to continue further experiments with these economically unsound guild building schemes?
§ Sir A. MONDApproval has been given as an experiment to the carrying out of 13 housing schemes under the guild system. It is not proposed to extend this experiment, but when the results obtained on the schemes now in hand are available I shall consider whether any modification of this method can be employed with advantage. Contracts are being carefully watched, and I should have no hesi- 1099 tation in advising a local authority to exercise their right to determine the same in the event of wasteful expenditure.
§ Lieut.-Commander KENWORTHYIs the word "bribes" a correct term to use in connection with these contracts, and can the right hon. Gentleman assure the House that he is not going to continue the policy of hostility to the guild system of building, as shown by his predecessor and in this question?
§ Sir A. MONDI think my predecessor showed every sympathy with the guild system. I have no hostility to the guild or any other system, but if it cannot produce houses on an economic basis, I am certainly not going to spend the taxpayers' money on it.
§ Lieut.-Commander KENWORTHYDo not the guild contracts so far show an actual reduction on the contractors' tenders?
§ Sir A. MONDNobody would be more pleased than I if they did, but at present I have no information that that is the case.
Mr. ALFRED T. DAVIESCannot the right hon. Gentleman give a statement showing the cost of building by private enterprise as compared with the guild system?
§ Sir A. MONDI shall be very pleased to do so when we have a scheme complete.
42. Mr. TREVELYAN THOMSONasked the Minister of Health the number of houses already actually completed under the housing schemes which have been built by the guild system, and the maximum and minimum cost of such individual houses, even though no whole scheme has been completed; and if he will say how these figures compare with the cost of similar types of houses in the same districts built by private enterprise?
§ Sir A. MONDOnly two houses have been completed by a guild at present. My hon. Friend will realise that no useful comparison of the costs can be made until a greater number of houses has been completed.
Mr. T. THOMSONIs the right hon. Gentleman aware that the two houses to which he has referred were certified by 1100 the Surveyor of the Bentley-with-Arksey Urban District Council as having cost £760, which is £200 per house less than the similar prices by ordinary private contract?
§ Sir A. MONDI am very pleased to have that information. From my own experience, I am not prepared to accept the prices of odd houses on a scheme. When a scheme is completed, and we have all the evidence available for making a fair comparison, I can assure my hon. Friend that nobody will be more pleased than I shall if the scheme works out well.