HC Deb 08 March 1926 vol 192 cc1911-2
69. Sir W. DAVISON

asked the Minister of Health whether he has any information as to the Ilford District Council having just placed orders in Germany and Belgium for 31 miles of electric cable; whether any loan has been raised in connection with this purchase; whether the same has been sanctioned by the Ministry of Health; and whether any condition was attached to such sanction as to the purchase of materials from British firms?

The MINISTER of TRANSPORT (Colonel Ashley)

I have been asked to reply. Sanction to raise loans for general prospective electrical distribution works has been given to the Ilford Urban District Council by the Electricity Commissioners, but I am not aware whether the cost of the cable, stated to have been ordered abroad, will be charged against this sanction. It is not the practice to attach to such sanctions any conditions as to the placing of orders.

Sir W. DAVISON

Is it not very desirable in these days of unemployment that British money should not be used for the purchase of goods in Belgium and Germany?

Mr. DUNNICO

Before the right hon. Gentleman answers that question, may I ask him whether he is aware that the difference between the lowest British tender and the tender accepted amounted to approximatly £1,000, equal to a halfpenny rate over the district; and is he aware that the British Cable Makers' Association is simply exploiting the municipalities in this matter?

Sir W. DAVISON

Will the right hon. Gentleman state how it is that the German and Belgian firms are able to quote so much lower prices than these British firms?

Colonel ASHLEY

I have no knowledge of the circumstances put forward by the hon. Gentleman opposite, but I may say in answer to my hon. Friend that in May, 1923, the Ministry of Health sent out circulars to local authorities pointing out that no grant from public funds out of the Unemployment Grants Fund would be given unless they employed British labour and British goods, and the same circular contained a recommendation that local authorities, in carrying out works themselves, should, unless there were special circumstances, give preference to British firms.

Mr. DUNNICO

Is the right hon. Gentleman aware that this particular authority six months ago opened tenders from seven British firms, and those tenders were identical to a halfpenny?

Colonel ASHLEY

I have no knowledge of the circumstances.

Colonel DAY

Is the right hon. Gentleman aware that the reason of the difference in price is the overhead charges put on by British makers?