28. Air: McEnteeasked the Under-Secretary Of State for Air whether he is aware that complaints were lodged six weeks ago that Messrs. F. W. Rigby and Company, of London, are not acting in compliance With the fair-wages clause as regards wages, hours, and conditions; whether these complaints have been investigated; and, if so, with what result?
§ The Under-Secretary of State for Air (Lieut.-Colonel Muirhead)The complaints made in this case are being made the subject of careful inquiry, but the investigations are not yet completed.
§ Mr. McEnteeDoes not the hon. and gallant Gentleman think that six weeks is a sufficiently long time for the inquiry, and is he not aware that there is grave dissatisfaction as the result of the delay?
§ Lieut.-Colonel MuirheadI can only say that the investigation is being carried out with all expedition.
§ 30. Mr. T. Smithasked the Under-Secretary of State for Air whether the contracts made by the Air Ministry, including those for the provision of tankage for the storage of reserve supplies of oil, can be made the subject of competitive tender by all firms on the official list of contractors who are capable of executing the work; and, if not, for what reasons?
§ Lieut.-Colonel MuirheadThe tankage to which the hon. Member refers will for the most part be erected on land owned or leased by the Air Ministry, and it is proposed to employ the oil companies who supply the Air Ministry with aviation fuel as agents for the erection of the installations that are required; it will be a provision of the agency agreements that competitive tendering is resorted to wherever practicable. The answer to the hon. Member's question is to that extent in the affirmative. There are, however, some cases in which use is being made of existing installations owned by the oil companies and on their land, and in these cases there is no alternative to a direct contract with the oil company which is concerned, and whose receiving and issuing facilities have to be utilised.
§ Lieut.-Colonel MuirheadThe procedure by which the price is ascertained has been explained on a good many occasions in this House.
§ Mr. Garro JonesDoes the hon. and gallant Gentleman remember that in previous contracts for the supply of steel structures the steel suppliers tendered precisely the same prices? What safeguard is there in the case of tankage?
§ Lieut.-Colonel MuirheadThe question of steel is a different matter. There are in a good number of cases special conditions which render the demanding of competitive tenders not very applicable.
§ Mr. H. G. WilliamsIs it the practice for all tenders to be on the same basis, or are there tenders considered on the basis of varying wage rates?
§ 32. Mr. Garro Jonesasked the Under-Secretary of State for Air whether he will state, having regard to the fact that more stringent rules govern the placing of noncompetitive than of competitive contracts, in which class fall those contracts for which a number of contractors have tendered precisely the same price?
§ Lieut.-Colonel MuirheadI would refer the hon. Member to the reply which my right hon. Friend the Chancellor of the Exchequer gave to him yesterday on this matter.
§ Mr. Garro JonesIs the hon. and gallant Gentleman aware that the Chancellor of the Exchequer was unable to give an answer?
§ Lieut.-Colonel MuirheadNo, the Chancellor of the Exchequer said that he was unable to lay down a general proposition, nor am I.
§ 34. Mr. Garro Jonesasked the Under-Secretary of State for Air whether there is any improvement in the percentage of competitive to non-competitive contracts placed by the Air Ministry in 1935, having regard to the fact that only 15 per cent. of the contracts were in that year competitive?
§ Lieut.-Colonel MuirheadThe figure of 15 per cent. to which the hon. Member refers related only to airframe contracts. The figures for all contracts for the financial years 1935 and 1936 were 32 per cent. and 28 per cent. respectively of the total values of the contracts placed.
§ 35. Mr. Garro Jonesasked the Under-Secretary of State for Air whether he can estimate for what further period it will be necessary for the Air Ministry to disregard, in the placing of contracts, those rules which the Public Accounts Committee have approved; and whether he can assure the House that the Secretary of State will, at an early date, be able to find time to give prior approval to contracts as high as £700,000?
§ Lieut.-Colonel MuirheadI would refer the hon. Member to the reply which my right hon. Friend the Chancellor of the Exchequer gave to him yesterday on this matter.
§ Mr. Garro JonesHas the contract which I have specified for £700,000, which did not receive the prior assent of the Minister yet received assent ex post facto?
§ Lieut.-Colonel MuirheadI think the hon. Member's question related to the procedure which was going to be followed, and my answer gave him the answer he required.