§ 37. Mr. Stokesasked the Secretary of State for War how many contracts for 3.45-inch shell made from bar, were placed during the latter half of 1936, and at what average price; how many of those contracts have since been renewed under a renewal clause, and at what average price per contract?
§ Mr. Hore-BelishaThere was one such contract for 3.45-inch shell, but in the event the majority of the shell were made from forgings. There was no renewal clause in the contract. It would be contrary to practice to disclose contract prices.
§ Mr. StokesIs the Minister aware that these shells from bar can, at to-day's prices, be made at 14s.; and will he assure the House that no such contract is at present running above that figure?
§ Lieut.-Commander FletcherWhat steps will be taken to obtain a revision of prices when these contracts come up for renewal this year?
§ Mr. Hore-BelishaI do not know that they are coming up for renewal this year. The usual practice will be followed.
§ Mr. KirkwoodIs it not the fact that forged shells are far superior to those made from bar?
§ Mr. Hore-BelishaYes, Sir, for shells of this size.
§ Mr. StokesIs the right hon. Gentleman not aware that all these contracts that were made in the autumn of 1936 are subject to renewal year by year? Surely it is unsatisfactory to hear that he is unaware that these contracts are subject to annual renewal?
§ Mr. Hore-BelishaIf the hon. Gentle man will accept what I say, there was no renewal clause in the contract to which J have referred.
§ Mr. StokesThat was a very exceptional contract.
§ Sir Percy HarrisWill these contracts be under the control and supervision of the right hon. Gentleman the Member for Luton (Mr. Burgin), the new Minister in charge of supplies?
§ Mr. Hore-BelishaYes, Sir.
§ Mr. George GriffithsIs it not a fact that the price now being paid is 50 per cent. higher than that mentioned by the hon. Member for Ipswich (Mr. Stokes)?