§ 23. Captain Cunningham-Reidasked the First Lord of the Admiralty what is the value of the stock of war time gun mountings for armed merchant ships still held by the Admiralty; what proportion of such value is written off yearly; and what system of occasional inspection or review of this material is employed to guard against its retention in store when obsolete and to ensure the necessary replacements?
§ Sir S. HoareThe ledger value of the gun mountings allocated to armed merchant cruisers, fast liners and defensively equipped merchant ships is approximately £2,500,000. The values of this stock are reduced by 4 per cent. annually to allow for obsolescence. These mountings are regularly inspected, and steps are taken 386 to maintain them in an efficient condition ready for use.
§ Mr. A. V. AlexanderDoes the First Lord consider that an allowance for depreciation under which it is 25 years before obsolescence arrives is sufficient for dealing with a stock of this kind?
§ Sir S. HoareI understand that that has always been the percentage, but I will look into it again and see if there is any reason for putting it higher.