HC Deb 27 March 1928 vol 215 cc978-80
38. Brigadier-General BROWN

asked the Minister of Transport whether his attention has been drawn to the repeated comments made by the Auditor-General on the special arrangements made by the Ministry with contractors to carry out certain road works; and whether, in view of the fact that under these contracts remuneration paid to contractors approximated in some cases in 1927 to 22 per cent. of the cost of the works, he will at once take steps to abolish this system and carry out the work with local authorities' aid instead?

Colonel ASHLEY

The contracts to which my hon. and gallant Friend refers were let during the years 1920–1922 in very exceptional circumstances, as owing to the urgency of instituting these works for the relief of unemployment it was not possible to obtain the data requisite to enable tenders to be invited before the contracts were let. The circumstances were fully explained to the Public Accounts Committee in 1924. Since 1922 no similar contracts have been let by my Department. I may add that the per- centage mentioned in the question was reached only in one case, and that the average percentage to cover the contractor's fee and bonus on the whole of the contracts was about 12½ per cent. of the net cost.

Brigadier-General BROWN

Is the right hon. and gallant Gentleman aware that this criticism is in the Report of the Auditor-General for 1926? Has he given the Auditor-General a reply about this matter to which attention was drawn in this 1926 Report?

Colonel ASHLEY

I do not know in what year the Auditor-General made these comments, but the facts are as stated in the question, and no similar contracts have been let since 1922.

Brigadier-General BROWN

Is the right hon. and gallant Gentleman not aware that the Auditor-General asked for a reply to this matter in his 1926 Report? Has the right hon. and gallant Gentleman made that reply, and has he satisfied the Auditor-General?

Colonel ASHLEY

The point was fully explained to the Public Accounts Committee in 1924. I have no knowledge as to whether we satisfied the Auditor-General, but if my hon. and gallant Friend will put down a question I will look into it.

Brigadier-General BROWN

But has the right hon. and gallant Gentleman seen the Report of the Auditor-General—has he any knowledge of it?

Colonel ASHLEY

No, Sir, I have not seen that particular Report.

Mr. T. WILLIAMS

Has the right hon. and gallant Gentleman made any definite statement to the Auditor-General arising out of his Report?

Colonel ASHLEY

I did not quite hear that question.

Mr. WILLIAMS

Are we to understand that Reports of the Auditor-General which refer to the right hon. Gentleman's Department are not brought to his notice?

Colonel ASHLEY

No doubt they would be brought to my notice if there was anything to answer, but the circumstances were explained in 1924 to the Public Accounts Committee, and they were satisfied.

Mr. WALTER BAKER

Has it not been definitely stated that the Auditor-General in 1926 made a further Report on this subject, which could not have been considered in 1924?

Colonel ASHLEY

Perhaps the hon. Member will put down that question.