HC Deb 08 June 1937 vol 324 cc1578-9
46. Mr. Garro Jones

asked the Chancellor of the Exchequer whether he is aware that the regulations governing the placing by Service Departments of competitive contracts are less stringent than those governing the placing of non-competitive contracts; that the distinction between these two classes has been in many cases obliterated by the elimination of real competition; and whether he will inquire in each Department under which class, and which rules, fall those contracts for which a number of contractors tender the same price?

The Chancellor of the Exchequer (Sir John Simon)

The hon. Member appears to be under some misapprehension; the regulations which he has in mind are concerned solely with the requirement that prior Ministerial approval should be obtained, in respect of orders placed, without competitive tender although competition is available. As regards the last two parts of the question, in all cases in which effective competitive tender is not available, it is the practice of Departments to adopt whatever means are practicable to satisfy themselves that the price tendered is reasonable.

Mr. Garro Jones

Can the right hon. Gentleman say in which class those contracts fall in which all tenderers quote precisely the same price? Are those competitive or non-competitive tenders?

Sir J. Simon

I cannot lay down a general proposition on that subject.

50. Mr. Garro Jones

asked the Chancellor of the Exchequer whether he is aware of the non-observance of regulations approved by the Public Accounts Committee, which require that contracts above certain minimum accounts, placed by the Service Departments, should receive prior Ministerial approval; that in one case at the Air Ministry a contract of £700,000 was abnormally so placed; and whether he can now take steps to restore the proper procedure?

Sir J. Simon

I understand that my Noble Friend the Secretary of State for Air has decided that it is now practicable to revert to the normal procedure whereby prior Ministerial authority is obtained for placing contracts in excess of certain limits without competition although competition is available.

Mr. Garro Jones

While appreciating the right hon. Gentleman's answer, can we have an assurance that the Secretary of State for Air will not revert to the irregular procedure, as he has now reverted to the regular procedure?

Sir J. Simon

I think we can take the statement I have made as indicating a fixed intention.