£8,000,000 FACTORY.

Taihape Daily Times, 13 November 1917, Page 2

£8,000,000 FACTORY.

SAVING OP £43,000,001) ON AMMUNITION . LONDON, The expenditure on one of our explosives exceeds £8.000,000. This is disclosed in the report of the Committee of Public Accounts, published last night. The committee were informed, the report states that the initial estimate placed before the Treasury, amounting to 'about £2,000,000 had been increased from time to time, uncontrolled by the Treasury. The estimated expenditure, up to March 31 last was £8.000,000 and the committee were informed that developments of scheme have been sanctioned which will involve further expenditure, the amount of which cannot at present be determined.

At the cost of production now reached, and assuming the factory continues i'u full production, if pay for the whole expense in about a year’s time, compared with the prices ’which were being charged by th£ American producers. Instances of economies effected by the costing system are mentioned in the report. In the case of shell and cordite alone it was reported that on a full year’s production the 1910 prices showed a. reduction of £1,734,000 as compared with 1915. . The total saving in the cost of ammunition in 1917 calculated on the production of the preceding year, as affected _, by redaction in 'prices, is estimated at £43,000,000 according to the report- and that notwithstanding the rise in wages. The report deals with the growth of the Ministry of Munitions. The headquarters staff, which at first’ numbered fewer than 200, had grown by March 31 last to more‘'than TO,OOO. besides a very numerous inspecting staff. Of this number about 330 were in the service of other Government departments, their salaries amounting roughly to £IOO,OOO per annum, being paid by those departments, and in addition there arc 405 officers and others whose pay and allowances amounting to £139,350 are charged against Army votes.