§ 26. Sir JOHN BUTCHERasked the Financial Secretary to the War Office whether the War Office, before they, in 1912, reappointed McGrigor's Bank to be Army agents for 20 years, made any inquiries into the solvency of the firm or saw any accounts of the firm; who was responsible for the failure of the finance branch of the War Office to take any steps, either before or after 1912, to satisfy themselves as to the financial position of McGrigor's while allowing them to hold themselves out as Army agents; and whether, in view of the fact that the War Office have already admitted a moral obligation in the matter, they will increase the grant of 10s. in the already made to such an amount as, with the dividend payable in the liquidation of the firm, will amount to 20s.?
§ Mr. GWYNNEThe answer to the first part of the question is in the negative. As regards the second part, the hon. Member will not expect me, at this distance of time, to allocate responsibility, if there was any, amongst my predecessors. With regard to the third part, I regret that I do not see my way to recommend that any increase in the ex-gratia grant of 10s. in the should be made. The matter has already been very fully discussed, and the Government consider 2140 that the grant authorised meets any moral responsibility incurred.
§ Sir J. BUTCHERDo I understand that the responsibility for not finding out the financial position of McGrigor's rests with the Finance Department of the War Office?
§ Mr. GWYNNEAs I said in my answer, it would be inadvisable for me to allocate responsibility for what took place years ago on any individuals then in my Department.
§ Sir J. BUTCHERIn view of the fact that the omission to inquire into the financial position of McGrigor's continued until quite recently, is it not possible to find out who is responsible?
§ Mr. GWYNNEThe contract with McGrigor's was entered into in 1912 for 20 years. The Financial Secretary and the Secretary of State for War are, of course, responsible to this House for contracts of this kind.