HC Deb 08 May 1939 vol 347 cc22-5
43. Mr. Burke

asked the Chancellor of the Duchy of Lancaster whether he is aware of the strong resentment felt by the manufacturers in Lancashire owing to the fact that orders for millions of yards of cotton cloth for the fighting and air-raid precautions services have been placed, not with the producers, but through agents; and whether he can give any reason for this procedure and state the average amount of commission charged by the agents for passing on the orders?

44. Mr. Lawson

asked the Chancellor of the Duchy of Lancaster whether he is aware that the Cotton Manufacturers Association has made strong complaints of the fact that Government orders for uniforms for the defence forces are being placed through agents instead of direct through the manufacturers; that such agents make large sums out of these transactions, although the persons concerned have no connection with the cotton industry; and why the respective contracts departments of the forces have taken this course?

The Chancellor of the Duchy of Lancaster (Mr. W. S. Morrison)

I have made inquiry of the Service contracting departments as to the points raised in these questions. As I understand the matter, the general practice is to order from makers and not through agents. The various operations in the cotton industry are, however, very complicated and performed by different sections of the industry and orders for cotton fabrics are placed after competitive tenders in which both manufacturers and merchant manufacturers may be included. It has long been the practice to deal with recognised merchant manufacturers on the same basis as with manufacturers, the former, by the custom of the trade and because of their technical knowledge of the operations, being admitted to tender in competition with the latter. There is no reason to suppose that the cotton trade takes any exception to this and it would not I think be in the public interest to exclude such concerns from Government business. It is not known what commission is charged by the merchant manufacturers but as I have stated orders are placed after competitive tendering in which both manufacturers and merchant manufacturers participate.

Mr. Burke

Is the right hon. Gentleman not aware that the Cotton Manufacturers' Association are at present making inquiries about this matter; that the numbers have been screwed down to 20,000,000 square yards and that £15,000 commission is being unnecessarily paid by the Government merely for the handling of that order; and that the Cotton Manufacturers' Association some time ago had a census and gave the Government information as to how it could deal direct?

Mr. Morrison

As I have said, the general practice is to invite merchants and manufacturers to tender, and the lowest tender is always accepted. If the hon. Member has any information of any particular transaction to which he wishes to draw my attention, I shall be obliged if he will give me the particulars.

Mr. Burke

Is the right hon. Gentleman not aware that these agents are not even merchants or manufacturers' agents? They are people who do not manufacture and do not handle the cloth, but merely pass it on, and it costs the Government £15,000.

Mr. Morrison

My inquiry shows that the general practice is to deal with the manufacturer or the merchant manufacturer. If the hon. Member has cases of the other kind to which he wishes to draw my attention, I shall be glad to investigate them.

Mr. Silverman

May I ask what steps, if any, are taken to secure that these orders are equitably distributed among the hard-hit parts of the county?

Mr. Morrison

The practice followed in placing these orders is to put them up for open tender. That is a general practice in all Government tenders.

Mr. Logan

Is the right hon. Gentleman not aware that the only way of placing these orders is with the manufacturers, and that if other men are allowed to come in it results in exorbitant commission?

Mr. Morrison

That is not always the case, because there are many manufacturers who are weavers who do not tender for the cloth in what is called the grey; and all subsequent proceedings done by other people have to be brought together by the merchant, and it is for him to tender.

47. Mr. Burke

(for Mr. Lawson) asked the Secretary of State for Air whether he is aware that an order was recently given for 2,000,000 yards of Royal Air Force blue cloth, for which an agent was paid a large sum; and whether it is now the practice of the contracts department to place orders through agents instead of direct with the manufacturers?

The Under-Secretary of State for Air (Captain Harold Balfour)

I am unable to identify the order to which the hon. Member refers. The most recent order for blue cloth placed by my Department was one for 142,500 yards, placed after competitive tendering with eight firms all of whom are manufacturers. It is the policy of my Department to buy on the most economical terms and, generally, it has been found that these are obtained by dealing direct with manufacturers.