HC Deb 18 November 1918 vol 110 cc3228-33W
Mr. HERBERT SAMUEL

asked the Chancellor of the Exchequer if he will state what action has been taken by the Government with respect to each of the Recommendations contained in paragraph 69 (10) of the First Report of the Select Committee on National Expenditure for Session, 1918, in paragraphs 12 to 16 and 28 of the Fourth Report, in paragraphs 1 to 14 of the Fifth Report, and in the Sixth and Eighth Reports?

Mr. BONAR LAW

issued the following statement:—

Recommendations. Action taken.
Pars. 8–14.—War Office.
Par. 9.—Application of the system of comparative returns to veterinary hospitals should be considered without delay. A test of the system is being carried out under the supervision of the War Office Cost Accounting Committee in a veterinary hospital.
Par. 10.—The disposal of the profits on the expenditure in canteens of the cash allowance of 6½d. per man per diem in lieu of undrawn rations is a matter proper for the consideration of the Public Accounts Committee. This has been noted.
Par. 11.—The situation with regard to the Central Regimental Institutes Fund requires further investigation by the War Office and the Treasury. The House of Commons should have cognisance of grants made from this fund, and of any proposals for dealing with the accumulated balance after the War. The Treasury is in communication with the War Office on this matter.
Sixth Report.
Ministry of Information. A separate paper is being issued on this Report.
Eighth Report.
Pars. 2–5.—Financial Relations with Allies.—Further considerations should be given to the suggestion that direct advances should be made to the Allies by the United States Government. This matter is being pursued in consultation with the United States Treasury.
Adequate measures should be taken to secure that claims are presented to Allied Governments for supplies provided for them simultaneously, as nearly as may be, with the disbursements made by the Treasury. It has been impressed upon Departments that they should present their Accounts monthly. At the same time it is recognised that there are inevitable delays in many cases between delivery and presentation of the Account. The Treasury intend, for the future, to cover the loss involved by the charge of a percentage.
Pars. 6–16.—War Office.—Staff of the War Office. In addition to the Standing Committee which the Army Council appointed some time ago to survey periodically the establishments of the various Departments of the War Office with a view to economy, the Council have now appointed a Special Committee to inquire into the present strength of their several Departments, and to report whether it is in excess of that required for the work necessary to be done. The Committee consists of Sir J. Ferguson, K.B.E., Manager of the National Bank of Scotland, London (Chairman), Lieutenant-General Sir H. S. G. Miles, G.C.B., G.C.M.G., C.V.O., lately Governor and Commander-in-Chief of Gibraltar, and Sir H. Haward, Controller of the London County Council, and in addition, the Director of the War Office branch concerned when the work of his branch comes before the Committee for review.

Recommendations. Action taken.
Pars. 17–24.—Motor Transport Depot at Slough.—The Army Council should keep a careful watch on this undertaking with a view to restricting its scale to more modest dimensions if any change of circumstances renders a smaller establishment sufficient for the immediate necessities of the case. The Committee's observations will be borne in mind.
Pars. 25–27.—Control of Wool.—It has been suggested that the War Office specifications for cloth involve the manufacture of qualities that are unduly costly, and the Committee are not fully satisfied that there are not considerable improvements to be made in the working of the Government control of the wool trade. The "conversion costs" allowed to spinners and the profits allowed to weavers appear to permit excessively high profits. They recommend a special inquiry into this subject by a Committee constituted for the purpose. The Council, who are in communication with the British Wool Trades Federation, have reason to believe that the evidence on which the Select Committee were led to make their recommendation was neither authoritative nor complete. They are pursuing the question with a view to placing a more complete statement before the Select Committee.
The conversion costs to spinners and manufacturers are considered reasonable and moderate and the Council think they will stand examination. As regards the civilian trade no conversion costs, either high or low, have been established. In the civilian wool trade, as in almost every civilian trade, the manufacturers and traders are fixing their own selling prices without State intervention.
In regard to specifications, there are at present a number of committees working on these almost entirely composed of expert manufacturers.
Par. 28.—Board of Trade.—Legislation to authorise increased dues at railway owned harbours now run at a loss should be considered. This matter is being investigated.
MINISTRY OF FOOD.
Pars. 30–47.—Ministry of Food. The two Royal Commissions on Sugar and on Wheat have, since the formation of the Ministry of Food, been parts of its organisation, in fact, though not in form. From the point of view of inter-allied working, as well as from several business aspects, it seems desirable to disturb as little as possible the form of the organisations upon which Allied co-operation has been largely based, and through which a considerable business has been conducted in Various parts of the world. The Food Controller is of opinion accordingly that the two Commissions should remain in existence while working in friendly accord with, and indeed practically as part of the Ministry of Food. He has, however, given careful consideration to the question of their position in respect of financial control.
Par. 46.—The Wheat Commission should be carried on as a definite division of the Ministry of Food and the Financial Secretary to the Ministry should be in direct personal control of the Finance of the Commission and should be its Accounting Officer.
Par. 47.—To secure unity of financial control in the matter of food supplies, we recommend that the functions and responsibilities of Royal Commission on Sugar Supply should be transferred to the Ministry of Food.
The two Commissions have now secured the services of a prominent accountant or firm of accountants, and the Food Controller is satisfied that the financial responsibility is in good hands in each of these cases.

Recommendations. Action taken.
At the same time, the Food Controller attaches great weight to the recommendation of the Parliamentary Committee as to the necessity of securing unity of financial control in the matter of food supplies, and of retaining Parliamentary control over expenditure in form as well as in fact.
He has accordingly constituted a Joint Finance Board, under his own chairmanship, on which Mr. Peat, Financial Secretary of the Ministry of Food, Sir Henry Primrose of the Sugar Commission, and Mr. Halsey of the Wheat Commission will meet.
The two Commissions will, through their representatives, be directly responsible to the Joint Finance Board. In the case of the Ministry of Food the Financial Secretary is already responsible to the Food Controller.
The Parliamentary Secretary, the Vice-Chairman of the Food Council, and the First and Second Secretaries to the Ministry of Food will be ex-officio members of this Board, for which the Food Controller and the Parliamentary Secretary to the Ministry of Food will be answerable to Parliament.