HC Deb 06 April 1936 vol 310 cc2428-9
85. Mr. HARDIE

asked the Chancellor of the Exchequer whether in the case of armaments orders now being carried out, any provision has been made for the limitation of profits in such cases?

The FINANCIAL SECRETARY to the TREASURY (Mr. W. S. Morrison)

Where contracts are placed by competitive tender, it is the normal practice to accept the lowest tender, other things being equal, provided that information in the Department's possession shows that the price tendered is reasonable. As stated by my right hon. Friend the Chancellor of the Exchequer on 12th March, where it is impossible to secure effective competitive tendering, it is the policy of His Majesty's Government that contracts should be settled on the basis of allowing a fair and reasonable profit, having regard to the circumstances of each case. This course has been adopted in regard to munition orders now being carried out, as for example the orders placed in connection with the expansion of the Royal Air Force.

Mr. HARDIE

How do they arrive at what is a reasonable cost, in the absence of competitive estimates?

Mr. MORRISON

The hon. Member will find the Government's procedure described in the answer given by my right hon. Friend on the 12th March.

Mr. HARDIE

Having read that answer, may I ask whether, in the absence of competitive estimates, it is not the business of the Government to determine what the price should be, from the knowledge which the officials in the Department have?

Mr. MORRISON

That is the procedure that is followed. In the absence of competitive tenders, all the circumstances of the case are taken into account and the price is fixed so as to award what is regarded as a fair profit in the circumstances.

Mr. THORNE

Are the Government entitled to examine, at the completion of the contract, the amount of the costs in comparison with the tender?

Mr. MORRISON

Yes, Sir. The Government have access to all the books and all the information required for fixing the profit fairly.

Mr. HARDIE

What is a fair profit?

Mr. MORRISON

That depends upon the circumstances in each case. It is necessary to take into account the conditions of each particular case.

County Marriages registered.
1914. 1920. 1925. 1930. 1931. 1932. 1933. 1934. 1935.
Argyll … … 305 312 250 239 276 297 278 271 275
Caithness … … 144 210 151 140 133 129 140 154 164
Inverness … … 403 545 391 446 441 475 459 435 469
Boss and Cromarty … 277 426 248 227 231 234 210 263 240
Sutherland … … 41 74 45 54 58 50 44 61 49
Similar figures for the islands mentioned are not available and could only be complied by the expenditure of a considerable amount of labour.

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  1. PERSONS AGED 16 TO 64. 76 words