HC Deb 09 March 1960 vol 619 cc393-4
1. Mr. Dodds

asked the Secretary of State for War the result of his investigations into the disposing in this country of surplus Army boots which were sold to a contractor for export only; how many pairs are involved; what was the average price per pair obtained for them by the Government: and what action is contemplated against the contractor.

The Secretary of State for War (Mr. Christopher Soames)

A consignment of boots was sold for about 10s. a pair to a contractor on condition that they would be exported. He in turn sold them, with the same stipulation, to another firm. That agreement was broken and some 43,000 pairs were put on the market in this country. I am satisfied that the first purchaser acted in good faith, and I am advised that I have no remedy against the second: but both firms were debarred from taking further part in this disposal. An amendment has been made to the terms of such contracts to prevent a repetition of the incident.

Mr. Dodds

In view of the need to avoid damaging the whole market, does the right hon. Gentleman think that he took enough precautions to see that if anyone broke the contract of purchase he could be penalised? Are we to take it that the boots were sold and the purchasers were told they must not do it but that when they broke the contract they got away with it?

Mr. Soames

I think that all that could be done was done. I am advised that this merchant sold them in good faith to a Dutch firm and that the Dutch firm then sold them in this country.

Mr. Strachey

How can the Secretary of State tell us that all was done that could be done when he has just said that in future there will be a clause in the contract to prevent this sort of thing, or to punish those responsible when it happens? Surely he must agree that the original contract must have been defective?

Mr. Soames

This was second-hand, not first-hand.

Mr. Strachey

Cannot that be guarded against?

Mr. Soames

I hope that this new clause will guard against it. But as I say, in my belief, having looked into the matter, the merchant acted in good faith in selling to a foreign firm.

Mr. Dodds

I am sorry, but owing to the most unsatisfactory series of answers which I have received, I give notice, so that the truth will be given to this House, that I shall raise the matter on the Adjournment.