Colonel COLLINSasked the Secretary to the Admiralty if firms constructing standard ships or ships of war are paid either by a percentage on the cost of labour or a fixed sum for management expenses and profit?
§ Dr. MACNAMARASo far as standard ships are concerned, the contract is on the time and line system, that is to say, after material and labour are paid for, a certain amount is allowed for establishment charges, and in addition an overall profit is allowed; these last two items are fixed 1661W according to the type of vessel under construction. As regards ships for the Royal Navy; in some cases, namely, those of the smaller auxiliary vessels, a fixed price for the whole ship is as a rule the system of payment. For warships proper, the contracts are on the time and line system, the expenses of management and the profit being paid for as a rule by fixed sums.