HC Deb 31 July 1939 vol 350 cc1942-3
57. Mr. R. C. Morrison

asked the Minister of Supply what action he proposes to take in connection with the charge of excessive profit-making from defence contracts made by certain machine-tool makers, and their refusal of facilities to check prices, as reported to the House by the Select Committee on Estimates?

Mr. Burgin

I would refer the hon. Member to the answer given by my right hon. Friend the Chancellor of the Duchy of Lancaster to the hon. Member for Stoke (Mr. E. Smith) on 14th June last. This question has been the subject of prolonged discussion between the Minister for Co-ordination of Defence and the Machine Tool Trades Association and I have now reached an agreement with the association, for a period of one year from 5th December, 1938, under which they have recommended their members to give a discount of 5 per cent. on all standard productions delivered after that date; and under which Departments will have the power to investigate costs in the case of non-standard productions, with the same retrospective effect. Steps are now being taken to implement this agreement.

Mr. Morrison

Is the right hon. Gentleman now satisfied that the patriotism of machine-tool makers is beyond reproach?

Mr. Austin Hopkinson

Does the right hon. Gentleman think that a 5 per cent. repayment is satisfactory in view of the terrific profits which they have made in the last few years out of the country?

Mr. Burgin

I am satisfied that the deliveries since 5th December, 1938, will, in fact, cover the bulk of the orders for the rearmament programme, and that a 5 per cent. deduction on the standard tools will amount to a large sum of money, and that the powers in the case of non-standard tools is an extremely valuable right to the Government.

Mr. Hopkinson

Will the right hon. Gentleman now answer my question?