HC Deb 08 March 1938 vol 332 cc1720-1
72. Mr. Garro Jones

asked the Under-Secretary of State for Air whether and to what extent the investigation of Government accountants into the cost of primary manufacturers of aircraft extends to an investigation of the costs of sub-contractors who supply the Government contractors?

The Under-Secretary of State for Air (Lieut.-Colonel Muirhead)

Investigations are carried out in cases where the Air Ministry directs the main contractor to sub-let work to a particular sub-contractor and where orders for components are placed with a specialist firm by a number of main contractors. The normal practice in cases of sub-contracting is for competitive tenders to be called for by the main contractor whose responsibility it is to satisfy the Department that the prices paid are fair and reasonable.

Mr. Garro Jones

With reference to the last part of that answer, is the hon. and gallant Gentleman aware that the safeguard of competitive tender has become nugatory on account of the difficulties of production and that many firms are not looking for orders, but trying to avoid them; and that the growing pressure of competitive buying, by Government contractors, against sub-contractors is sending up prices out of all proportion to costs?

Lieut.-Colonel Muirhead

The supplementary question of the hon. Member seems to raise rather a wider question than the actual method which is employed to check whether the sub-contract price is reasonable. I think the method that is employed is reasonable. That is our experience.

Mr. Garro Jones

Is it not the fact that the hon. and gallant Gentleman is relying upon competitive tender by sub-contractors to keep the price down, and that, where sub-contractors are not looking for work, competitive tender is no safeguard, because Government contractors are willing to pay any price for many commodities such as jigs and tools?

Lieut.-Colonel Muirhead

If a sub-contract were put up to competitive tender we should examine, first of all, whether the sub-contract was put on a sufficiently broad basis of competitive tender and whether the lowest price had been accepted. If we were satisfied on these

Area. Average number of persons in receipt of out-relief in money and kind during Average weekly cost of out-relief in money and kind during
December, 1931. December, 1937. December, 1931. December, 1937.
£ £
Lancs. Administrative County … 20,003 34,343 5,728 14,524
Manchester C.B. … 39,862 30,611 13,042 15,350
Salford C.B. … 4,746 6,040 1,615 2,759
Liverpool C.B. … 46,803 49,467 14,928 20,317
Blackburn C.B … 2,673 2,355 762 783