§ 24. Mr. MACPHERSONasked the Parliamentary Secretary to the Admiralty, in view of the fact that the director of contracts in his Department issued tender forms for supplies of fresh vegetables to the victualling yards of Gosport and Plymouth to run from 1st November, 1923, to 31st October, 1924, and that contracts were accepted by tenderers for the whole of this period, and that in spite of this new tenders were invited on 23rd April last to operate during the months of May and June last, if he will say why a step of this kind, which is in the interests of private contractors who had agreed to perform a definite contract and against the interests of the State, should have been taken?
§ Mr. AMMONThe step taken was justified by the change in market prices since the contract was entered into, and this was properly taken into account as a matter of fair dealing between the Department and the contractors.
§ Mr. MACPHERSONDoes the converse also apply, so that when prices change in favour of the contractor, the Admiralty in its turn can have the advantage?
§ Mr. AMMONIf the circumstances arose as suggested by my right hon. Friend, I would of course go into the matter.
§ Mr. MACPHERSONWould this sort of transaction be tolerated in any private firm?