§ 56. Lieut.-Commander KENWORTHYasked the Under-Secretary of State for India if he is aware of the large orders for railway and engineering material placed by the Indian State Railways with foreign firms; and if he has any figures showing the value of this business placed by the Indian State Railways during the year 1927 and the present year, respectively?
§ The UNDER-SECRETARY of STATE for INDIA (Earl Winterton)I am aware that, consequent on the undertaking given by the Government of India to the Legislative Assembly that in the case of orders for stores placed outside India tenders would normally be invited by advertisement and the lowest satisfactory tender accepted, some orders for such stores have been placed with foreign firms. The total orders so placed for Indian State Railways, including those worked by companies, during the year ended 31st March, 1928, amounted to £1,057,589. This figure represented about 21 per cent. of the total orders placed during the same period. In other words, some 79 per cent. of the total value went to British manufacturers. The orders placed with foreign firms during the year ended 31st March, 1927, amounted to £2,322,601, representing about 23 per cent. of the total. The balance, 77 per cent., was placed with British firms.
§ Lieut.-Commander KENWORTHYIs the Noble Lord aware that very heavy orders have recently been placed for such goods a6 locomotives and engineering parts, which have a maximum of labour value, with firms such as Krupps 813 and the Hungarian State Railways, and is there any means—I know the Noble Lord wants to help in this matter—by which some pressure can be brought to bear to see that these orders are, where-ever possible, placed with British firms?
§ Earl WINTERTONNo, Sir. With the permission of the House I would like to make a more detailed reply than I usually make to a supplementary question, because this is an important matter. By an arrangement entered into, not by the present Government but by their predecessors—I think it was the Coalition Government—and the Government of India it was agreed that practically all orders of State requirements in India should be open to the lowest tender, that is to say, to all firms abroad and in this country. There has been great criticism at different times of this system. There has been a suggestion made in some quarters in this country of unfair bias against British firms. Equally, there has been criticism in the Assembly of bias against foreign firms. Neither of these criticisms in the opinion of my Noble Friend is in the least justified. The only way in which British firms can compete with foreign firms is by lowering their prices.
Major-General Sir ROBERT HUTCHISONMay I ask if these transactions have been financed by money authorised to be borrowed in the City of London?
§ Earl WINTERTONThat matter was discussed in a Debate some time ago when I was in charge on behalf of the then Government. It was raised by my right hon. Friend the present Foreign Secretary, who was not then a member of the Government, and by the right hon. Gentleman the hon. and gallant Member's own leader, both of whom at the time criticised the anion of the Government of India. But the Bill, as far as I can recall, was carried unanimously by this House. It is a fact that some of that money has been raised in that way, but that does not affect the main princple that India has been given, under her constitution, the right to buy in the cheapest markets, with which I think the hon. and gallant Member will sympathise.
§ Lieut.-Commander KENWORTHYThis matter is so important that I would 814 like to refer to it on the Adjournment to-night, if that will suit the convenience of the Noble Lord?
§ Earl WINTERTONindicated assend.