§ Sir E. Graham-Littleasked the Post-master-General what proportion of the total expenditure per annum of the Post Office is represented by payments to contractors, firms or persons not forming part of the Civil Service; what is the average period of time between placing orders with such contractors, firms or persons and payment for the goods or services supplied; and what proportion of such expenditure is represented by physical assets whose useful life is longer than the period between the placing of an order and payment for it.
§ Mr. Wilfred PalingThe proportion of the total annual expenditure of the Post Office represented by payments to contractors and other persons outside the Civil Service was about 20 per cent. in 1946–47, of which contracts for services account for about half. The period of time between placing orders and payment varies with the period required for production (which may range up to three years), the arrangements in individual contracts for progress payments of various types, and the time taken in the submission and examination of accounts. The calculation of the average period would involve a large amount of work and, in view of the many different types of contracts in question, I do not think that any useful purpose would be served by undertaking the inquiry. As regards the last part of the question, the life of practically all physical assets purchased is longer than the period between the placing of the relative order and payment.