§ Mr. W. ANDERSONasked the First Lord of the Admiralty what grants, loans, advances, or gifts have been made during the War by his Department to employers or manufacturers for the purchase, repair, or upkeep of plant, machinery, or factories, or for other purposes, and on what conditions?
§ Dr. MACNAMARAIt has been necessary for the purposes of the War to extend the plant and works of certain manufacturers who, while having no need or desire for their own purposes to undertake work beyond their pre-existing capacity, had been pressed to expand their production of purely war material or of merchant shipping tonnage. Extension of existing works where practicable was considered to be more speedy and economical than the erection of entirely new factories or yards. In some of these cases contributions towards the greatly increased cost of carrying out such extensions under war conditions have been made out of naval funds. The conditions imposed vary to meet the circumstances of each scheme. It should be remembered that where a firm carries out such an extension without direct assistance, the Commissioners of Inland Revenue have power to make a rebate of the excess cost due to war conditions in assessing the sums liable for Excess Profits Duty; and where direct grants are made, the facts are reported to Somerset House to prevent any undue allowance being made by that Department. When the whole cost of the extension has been borne by the Admiralty, the plant and works remain Admiralty property, the firms paying interest, or rent, or making an allowance in the contract price fixed for work made on the plant in question.