HC Deb 25 July 1916 vol 84 cc1511-2W
Mr. FARRELL

asked the Secretary of State for War why the War Office, by notice dated 24th March, 1916, accepted a three-months' contract for the supply of bread from Messrs. M. and T. Clarke, Bally lymahon, North Longford, and, without any cause of complaint, by notice, dated 10th April, served notice to discontinue the contract; whether he is aware that, on receipt of the acceptance of their contract, Messrs. M. and T. Clarke entered into a contract with Messrs. Walter Braine and Company, Dublin, for the supply of a large quantity of flour to enable them to fulfil their contract; whether, subsequently to 24th March, the Government directed the sale of a large quantity of wheat, which caused a slump in the price of flour; whether the contractors had no notice of this and had made commitments which would then have meant a loss owing to the slump in price; whether he is aware that the contract made for three months, on 24th March was terminated on 10th May, the clause under which it was terminated being the sixteenth clause, not the seventeenth, which goverened the case; whether he is aware that Messrs. Walter Braine and Company were put to a loss of £30 on one wagon of flour ordered in respect of that contract, and that they offered to hand over the flour to the military at the contract price, which offer was refused; and whether, taking all the facts into account, he will explain why Messrs. Clarke and Messrs. Braine have been put to this loss through no fault of theirs, but simply because the Government flooded the market with cheap wheat?

Mr. FORSTER

A contract was made on the 24th March, 1916, with Messrs. M. and T. Clarke to supply bread to the troops at Longford for three months from 1st April, at 8¾d. per four pounds. The contract contained a clause empowering the War Department to terminate it by one month's notice, and as the price was high and cheaper arrangements were possible, this right was exercised on the 10th April. As the estimated requirements were stated in the contract at 120 pounds daily, representing for the period of the contract thirty sacks of flour, and as the firm actually supplied nearly twenty-eight sacks, they would not appear to have suffered any substantial loss through the exercise of the right of termination. The Department has no knowledge of the contractors' transactions with Messrs. Walter Braine and Company, or of any loss sustained by the latter firm, or of the slump in the price of flour alleged to have been caused by Government action.