HC Deb 25 April 1923 vol 163 cc432-4
25. Mr. THOMAS DAVIES

asked the Parliamentary Secretary to the Admiralty what the Admiralty have done to comply with the resolution passed by the Imperial Conference in 1918 to the effect that preference should be given, where practicable, to Empire products in Government contracts?

Commander EYRES-MONSELL

In pursuance of the policy referred to, a 16⅔ per cent. preference in price was up to last year given in Admiralty contracts to products of the Empire. The question was then further investigated, and it was found that, by increasing the preference, on home products to 25 per cent., a substantial number of contracts would be diverted from the foreign to the home market, but that a similar increase in the preference granted to products of the other parts of the Empire would have no appreciable effect. The preference on home products was, therefore, increased to 25 per cent., and remains for Dominion products at 16⅔ per cent. In exceptional circumstances the above percentages may be slightly increased. On the other hand, if in any particular instance there were evidence of contractors taking advantage of the preference to secure undue profits, the preference would be reduced or altogether suspended. As a result less than 1 per cent. in value of Navy contracts, if oil fuel is excluded, went to foreign contractors during the last financial year. Of this percentage most of the commodities cannot at present be produced within the Empire, and in the case of the remainder the difference of price is large, in some cases as much as 50 per cent. or more.

Captain WEDGWOOD BENN

Is there any sanction by the House of Commons of this additional burden on the taxpayer?

Commander EYRES-MONSELL

It is allowed by the Treasury as a matter of administration.

Captain BENN

But I am asking whether the House of Commons, which represents the taxpayer, sanctioned this additional burden?

Commander EYRES-MONSELL

There is no additional burden. I do not think the House of Commons can sanction every administrative action, but I am sure that if it came before the House of Commons, the House would sanction it.

Captain BENN

I am not asking the hon. and gallant Gentleman for his well-informed forecast, but I am asking whether this question has ever been before the House of Commons?

Mr. SPEAKER

That question can be raised on the Navy Estimates.