§ 26. Mr. Garro Jonesasked the Under-Secretary of State for Air whether the Air Ministry regulations based upon arrangements approved by the Public Accounts Committee in 1909 still require the Secretary of State's prior authority for the placing of contracts in excess of £20,000, and the Under-Secretary of State's prior authority for contracts in excess of £500; and, if not, what in each class was the highest contract placed since 31st March, 1936, without such prior authority, and the total amount of contracts so placed since the same date?
§ Sir P. SassoonThe regulations referred to require the approval in writing by the Under-Secretary of State for all orders (other than purchases of experimental stores) exceeding £500 in value, and by the Secretary of State for orders exceeding £20,000. Normally, Ministerial approval in such cases is obtained before the contract is placed, but in the exceptional circumstances of the last two years approval has been obtained ex post facto in a number of cases with the object of expediting delivery. I should make it plain that in every case whether approval is given prior to the contract or not, the full facts and all the circumstances are placed before the Secretary of State or the Under-Secretary of State as the case may be. The largest contracts to which approval has been given ex post facto since 31st March, 1936, are £700,000 in the case of the Secretary of State and £19,000 in the case of the Under-Secretary of State. The former order was given so as to secure the full and continued output from a firm of a particular article for which the total production capacity available was insufficient to meet full Service requirements. The 267 total value of contracts so approved during the financial year 1936–37 was £2,454,000.
§ Mr. Garro JonesIn view of the fact that this is a very large departure from financial custom, will the right hon. Baronet take steps to curtail this procedure on the part of the Air Ministry? Further, can he say whether the figures he has given include contracts placed by way of provisional contracts?
§ Sir P. SassoonI must have notice of that question. These contracts are placed only in cases of extreme urgency, and we welcome the close scrutiny of the Public Accounts Committee of every one of them.