§ 7. Mr. Beswickasked the Secretary of State for Air to what extent he ensures the application of the fair wages clause in relation to equipment ordered from foreign sources.
§ Mr. BirchThe Air Ministry does not normally order equipment direct from foreign sources, but if the necessity should arise a fair wages clause would be included in the contracts.
§ Mr. BeswickIs that not in direct contradiction to the information which the right hon. Gentleman gave in a letter about the contract recently awarded to a foreign firm, where there had been an invitation to tender and where the foreign firm undercut the British firm? There were absolutely no means of ensuring that the fair wages clause was observed by the foreign firm concerned.
§ Mr. BirchI understand that this order was not placed direct. It was placed through a British agent. Of course, the hon. Gentleman is perfectly correct in saying that it is extremely difficult to enforce a fair wages clause in a foreign country.
§ Mr. BeswickWhat is the purpose of the fair wages clause if the onus is placed on the British firm to observe it and if it is possible for a foreign firm, whether the goods are brought in directly or indirectly by merchants, to undercut the British producer? Surely that is a point that ought to be looked into.
§ Mr. de FreitasWhat is the purpose of having the fair wages clause if it is not Government policy to enforce it?
§ Mr. BirchIt is Government policy, and if it came to our notice that any firm had acted in flagrant breach of it, such a firm would not get another contract, but the hon. Gentleman will see that it is not an easy matter to enforce.