§ 74. Major BIRCHALLasked the Secretary of State for the Colonics whether he is aware that the Crown Agent for the Colonies has recently placed a contract for locomotives for the Uganda Railway with a Lancashire firm by private treaty instead of by public tender; whether other locomotive builders were denied the opportunity of tendering; and whether, since this is opposed to the stated policy of his Department, he will give instructions that for the future all locomotive builders are to be placed upon an equal footing when his Department are purchasing?
§ Mr. CHURCHILLThe Crown Agents' ordinary practice is to invite competitive tenders from the firms on their list, which, in the case of locomotives, includes practically all the firms in the United Kingdom which build locomotives. This procedure was followed in the case of five locomotives for the Uganda Railway, and the lowest tender, which was accepted, was accompanied by an offer to reduce the price by £30 a locomotive if the order was increased from five to seven. This information was telegraphed to Kenya, and, as it had become possible to order? an additional 15 locomotives, which were to be of identical design with the original five, the Crown Agents were instructed to take advantage of the firm's offer to reduce their price. As a result of 36 negotiation with the firm, the Crown Agents were able to secure not only the reduction of £30 per locomotive for the first five, but a reduction of £150 per locomotive for the additional 15. In my opinion, the Uganda Railway authorities and the Crown Agents have acted prudently in this matter from the point of view of economy.