ARMOUR-PLATE "RING"

Dominion, Volume 11, Issue 217, 1 June 1918, Page 7

ARMOUR-PLATE "RING"

CURIOUS NAVAL CONTRACT CASES REVEALED. A remarkable case of a combination of contractors for the Navy is given in thereport of tho Auditor-General .on tho Naval Accounts for -1916-17. Hβ tolls how tenders for guu-sluolds, etc., wero invited from fivo armour-plate contruo 'tors, nil of whom quoted an identical and, in the opinion of the Admiralty, excessive price. ■In view of the urgent necessity for early delivery orders were placed with four of the firms with a re- ' quest for revision of. the price. In reply each of the firms offered jv similar reduction, which, although considered inadequate, was ■ agreed to in the circumstances.. The deliveries of the Run- ' shields took place at dates varying from two to six months subsequent to tho 'dates promised, "but the high prices obtained do not appear to liavo been further reduced in consequence." The Auditor-General nlso deals with the erection of a new naval cordite factory, for which towards the ,closg of 1911-15 the Treasury sanctioned an expenditure of i! 850,000. The contract for the buildings was tobb' on tho net cost and r-er-centage basis, and the supervision of ' their erection, a 4 well as tho installation of machinery and plant, was to be m 'the hands-of'-a firm of consulting engineers whoso remuneration was to be a uniform percentage ou tho cost of the ■'■work. In 1915-16 tho total. expenditure amounted to over £1,000,000, and the engineers' remuneration was revised to a 'eliding scale of reduced -percentages. ' Tho total cost of the building" and plant up 'to September 30 last wns £), 840,000. 'From an inquiry recently made," tho Auditor-General remarks, "T understand that the sanction of the Treasury Ims not yet been obtained for the' increase of expenditure over estimate, nor hag the revised percentage for the engineers' remuneration b»nn brought to the notice of that Department;" ■ •