Sir F. HALLasked the Minister of Health whether the Building Material Supply Department charge a commission of 2½ per cent, on the invoice value of all building material supplied for approved housing schemes; whether, in addition to this commission, the Department solicits and obtains orders for the supply of the goods, and in such cases retains the 5 per cent, profit, which in the ordinary course of events would go to the merchants whose business it is to supply such materials: whether these charges consequently increase the cost of the houses to be constructed; whether the Ministry of Health has obtained Parliamentary sanction for the establishment of what is to all intents and purposes a commission agency and trading department; and why the Government exercise such powers as they may have for the purpose of influencing the sale of such materials through their own Department instead of such purchases going through merchants who are recognised as the proper channels?
§ Dr. ADDISONThe Department of Building Materials Supply was originally established as a Department of the Ministry of Munitions with the object of ensuring a sufficient supply of materials for State-aided housing schemes. The Department was able by bulk purchase, and on a basis of costings, to acquire materials at a lower price than that which building contractors would be obliged to pay in the open market. In accordance with the usual practice it was provided in the Estimates which were laid before Parliament that the whole of the cost of supplying the materials to local authorities should be recovered from the local authorities to whom the materials were sold. In order therefore to comply 1159W with these conditions a charge is made to cover the expenses (including interest) of carrying out the service. These expenses are estimated at 2½ per cent, of the sales.