§ 65. Mr. Kirby
asked the First Lord of the Admiralty what is the present method, and the method to be employed in the immediate future, in the making of contracts for building cargo vessels for postwar trade; and are orders placed with firms having building facilities on cost-plus or similar basis, or are they placed on contract on a competitive price basis of tender.
The present policy is to order merchant vessels on Government account only when they are required for specific operational purposes. Most cargo vessels now under construction, or which will be laid down in the future, are on account of shipowning firms. For such vessels an Admiralty licence is necessary but the contracts are a matter of agreement between the shipbuilders and shipowners concerned.
If they are dealing with private contracts, they may well be tendering with shipowners on a competitive basis.