Wing-CommanderJames asked the Parliamentary Secretary to the Ministry of Supply whether he is aware of the frequency with which sub-contracting for miscellaneous goods required for the Services passes through the hands of middlemen who are, in many cases, merely agents working upon commission and unconnected with the production or manufacture of the articles; and whether, in order to stop this practice, he will cause steps to be taken to ascertain from producers the channels through which they have received the orders and to whom they have paid commission?
§ Mr. Harold MacmillanMy hon. and gallant Friend will appreciate that the number of sub-contracts is so large that individual investigation is impossible. In substantial sub-contracts, provision is made for investigation of costs and a considerable number of such investigations have been made, but no evidence has been found of the practices referred to. If it were observed that a commission, other than one which is payable under normal commercial practice and represents fair payment for services rendered, had been paid, it would be objected to and disallowed.