§ 49. Mr. E. Fletcherasked the First Lord of the Admiralty what inquiries he made before consenting to the transfer of all current Admiralty contracts from John Brown and Company Limited to John Brown and Company (Clydebank) Limited.
§ Mr. DigbyThe customary inquiries were made in order to ensure that the new company was in a position to complete the contracts in accordance with the obligations and conditions set out in them. The inquiries proved satisfactory.
§ Mr. FletcherYes, but will the Civil Lord say whether his attention has been directed to what the Economic Secretary to the Treasury said in the House last Wednesday? Could the Civil Lord allay the suspicions that have arisen by giving an assurance that this re-organisation was not entered into merely as one of those devices for avoiding tax which was so scathingly denounced by the Economic Secretary last week?
§ Mr. DigbyI have no reason to believe that this is the case. My attention has been drawn to what the Economic Secretary of the Treasury said.
§ Mr. FletcherCan the Civil Lord give us an assurance that that was not the only reason for this re-organisation?
§ Mr. DigbyI am not responsible for that aspect of the matter. The Question relates to Admiralty contracts, and we are satisfied that they can be fulfilled by the company.