HC Deb 25 February 1942 vol 378 cc222-3W
Major Lyons

asked the First Lord of the Admiralty whether his attention has been called to a recent case at Liverpool Assizes where a contractor to the Admiralty has been convicted in respect of frauds against the Department arising out of a system of payment on cost-plus-profit basis; and why, and to what extent, this method is allowed to persist?

Mr. George Hall

My hon. and gallant Friend presumably refers to the trial of David Rowan, to the circumstances of which my attention has been called. With regard to the second part of the Question, the reason for and the extent of the use of cost-plus-profit contracts in Admiralty work were explained in the reply given by my hon. Friend the Parliamentary Secretary to the hon. Member for Greenock (Mr. McNeil) on 19th November last.