My views generally on the centralisation of purchases are to be found in the Report of the Committee on the Amalgamation of Services common to the Navy, Army and Air Force (Cmd. 2649), pp. 42 to 103 (Report of the Sub-Committee on the Amalgamation of the Supply Departments). A memorandum dealing with the supply of clothing is subjoined.

SUPPLY OF CLOTHING.

The Admiralty, War Office, and Air Ministry each makes arrangements for the supply of uniforms and certain other clothing, required for the forces under its control, and also for messengers in its civil offices. Expenditure (1926) is estimated as follows:

The three services act in close consultation in regard to purchase of cloth and contracts for making up, though each places its own contracts. Cloth is bought in bulk at suitable terms for trade supplies, and is made

up

(a) Navy (i) under contracts.

(ii) by wives and widows of naval ratings and marines at fixed rates.

(b) Army (i) at the Royal Clothing Factory.

(ii) under contract.

(c) Air Force-by contract.

Other clothing is similarly purchased by each service for its own purposes.

Boots are to some extent an exception; the Air Force use Navy patterns and supplies for R.A.F. are bought by Admiralty.

Police. So far as concerns the Metropolitan Police, the practice since 1918 has been to buy cloth from contractors on the lists for the fighting services, and to place contracts for making up uniforms-the contractors for making up are rather specialists in police and railway uniforms, than military contractors. Cloth at one time was inspected by the War Office; latterly it has been inspected by the India Stores Department.

The value of contracts varies from year to year (owing to the regular issue of great coats each third year) but averages £110,000 per annum. Boots are provided by the men themselves out of a boot allowance.

As regards other Police. There is no standardisation, and each Local Authority buys uniforms, etc., independently-most by contracting for complete uniforms. Boots are bought out of boot allowances as a general rule. The total cost of clothing, etc., is approximately £450,000 of which about two-thirds is the sum of contract purchases made independently by individual local authorities, the balance being allowances for boots, etc. The Post Office buys uniform required for its staff at a total cost (Estimates 1926), of £292,000 per annum. The cloth used is not of the same type as for the fighting services, and co-operation with those services has not been of any great advantage. The cloth bought is, however, inspected by the War Office inspection staff. The contracts made are (i) for cloth (ii) for making up, and are spread over the year, though the issues are usually greater in winter than in summer. One weight only of clothing is issued, and, apart from great coats, the issues are at 9 months intervals.

In addtion to provision of clothing for Post Office staff, the Post Office Stores Department provides on repayment uniform for all messenger staff of Civil Departments, for other uniformed Office of Works employees, and for caretakers, etc., in Museums. The annual cost is approximately £15,000 and this arrangement has been in existence for some years, under directions from the Treasury.

CLOTHING FOR PRISONS STAFF.

The cost of uniform in prisons is £15,000 (1926) for England and Wales, £1,500 (1926) for Scotland.

The practice is to buy cloth under contracts made in consultation with the War Office, and subject to War Office inspection. The uniforms are for the most part made up by prison labour, but a few are obtained by contracts for making up placed by the Prisons Department.

I think we have gone as far as is reasonably possible to secure co-ordination of purchase and centralisation as regards uniform and and clothing supplies under direct control. The question of police uniforms is under consideration at the Home Office and it is in prospect to set up a committee to consider centralisation or co-ordination of purchase. Police forces are not employed direct by the Government, but are under the respective local police authorities, Votes of Parliament contributing 50 per cent. of the net expenditure.

AUSTRALIAN ZINC CONCENTRATES.

As a result of representation made by Mr. Hughes, representing the Australian Government, in 1916, arrangements were entered into between the British and Australian Governments whereby the former undertook to purchase during the War and for a period subsequent thereto certain quantities of Zinc Concentrates and Spelter produced in Australia.

The objects of these arrangements were (a) to meet the United Kingdom demand for Spelter for munitions purposes, supplies of that metal from Germany and Belgium having been cut off owing to the war; (b) to avert the danger of complete stoppage and unemployment at the Australian mines, consequent upon the Australian Zinc Concentrates Producers finding themselves cut off from their European market; and (c) to secure supplies of Concentrates with a view to promoting Spelter production in the United Kingdom.

In order to give effect to the arrangements made between the two Governments, two contracts were entered into by the Board of Trade with the Australian Zinc Producers' Association (Proprietary) Limited (a combination of all Australian producers (A) for the purchase of Zinc Concentrates and (B) for the purchase of Spelter and/or Refined Zinc. The contract for the purchase of Spelter was determined in 1923 as the result of arrangements concluded with the Electrolytic Zinc Company of Australasia.

The Contract for the purchase of Zinc Concentrates provides for the purchase by the Board of Trade of the Australian output of Concentrates up to a maximum of 250,000 tons per annum for the period 1st January, 1918, to 30th June, 1921, and up to 300,000 tons per annum from 1st July, 1921, to 30th June, 1930. Under the Contract the Board also undertook to purchase the stocks of Concentrates in Australia (Broken Hill) at 1st January 1918.

The prices payable for the Concentrates were fixed up to 30th June, 1925, after which date they vary according to the market price of Spelter when that price exceeds £30 a ton.

At 31st March, 1926, 1,721,278 tons of Concentrates, including the stocks, had been delivered to His Majesty's Government at the mines at a total ascertained cost at that date of £7,580,659.

Sales of the Concentrates are effected through agents namely, the Zinc Producers' Association (Proprietary), Limited, for Australia and the East, and the British Metal Corporation, Ltd., for the United Kingdom and countries west of Suez. The agents are remunerated at rates varying according to the nature of the services rendered and the various commissions, &c., payable to them amount in the aggregate to between three and four per cent. in Australia and in respect of sales elsewhere, to between four and five per cent.

A number of long term Contracts for sale have been entered into, including contracts to supply smelters in this country.

The prices obtainable for the Concentrates on resale depend upon the current market prices of spelter.

The gross amount of £2,315,500 provided in the Estimate 1926 is intended to cover payments falling due in respect of probable deliveries under the Contract during the current financial year and in addition anticipated freight and agency charges.

It is anticipated that receipts from sales of the Concentrates will amount to £1,790,000 in 1926. An Appropriation in Aid of this amount has therefore been taken under Sub-head B, leaving a net amount of £525,500 to be voted.

Up to 1st April, 1919, purchases of Australian Concentrates were paid for out of Vote of Credit monies, and between that date and 1st October, 1921, when the service first became a charge on the Votes, by means of adavnces from the Civil Contingencies Fund. The cost of the service was borne on the main Vote for the Board of Trade (Class II, 9), from 1st October, 1921, until 31st March, 1925, when it became a separate Estimate.

Statement showing Votes and Expenditure for the Years 1921-22 to 1926.*

1921-22.

1922-23.

1923-24.

1924-25.

Estimated. Actual. Estimated. Actual. Estimated. Actual. Estimated. Actual.

£

£

£

£

£

£

£

£

£

£

762,857 1,418,900 1,803,403 2,120,000 1,317,110 2,050,000 1,386,591 1,830,000 2,315,500
244,463 500,000 960,975 2,005,000 1,732,694 2,050,000 1,657,847 1,571,000 1,790,000
518,394 918,900 842,428 115,000 415,584+
271,256† 259,000 525,500

* Borne on Board of Trade Vote (Class II., 9) prior to 1925-26. + Surplus of Appropriations in Aid.

APPENDIX V.

WAR OFFICE.

Additional Information for the Estimates Committee with Reference to Question 1095.

66

The Household Cavalry hospital at Regent's Park, though called a "hospital," is really only a reception station" in which are treated cases of a very minor nature which do not require treatment in a dieted hospital. It has 8 beds only. Any cases which require proper hospital treatment are sent at once to Queen Alexandra's Hospital at Millbank or the Royal Herbert Hospital at Woolwich.

Little or no economy would be effected if these minor cases were sent direct to a dieted hospital instead of being treated in a "reception station ".

THE WAR OFFICE.

2nd July, 1926.

Additional Information for the Estimates Committee Regarding
Netley Hospital.

Reference Questions No. 1131, 1132, 1148, 1149 &c.

(a) The maximum number of officers in Netley Hospital (19) was reached on four days, and the maximum number of other ranks (493) on two days. Since 1st January, 1926, the number of beds occupied has exceeded 450 on 14 days and 400 on 61 days.

As indicated in reply to question 1207, the question of equipped beds is under constant review, and reductions in the number of equipped beds both at Netley and other hospitals may be anticipated as the result of the current review.

(b) The main function of Netley is to take invalids coming from abroad, though it also takes some of the tubercle and other cases from the Southern Command, and lunatics from all Home Commands, (except Ireland and Scotland) as well as from abroad. It follows that during the trooping season a high proportion of beds is occupied while in the nontrooping season a large proportion is empty.

The relation of the Military hospitals at Netley and Cosham to each other and to the Naval Hospital at Gosport is being further examined in accordance with the undertaking given in answer to question 1148. A meeting of the interdepartmental Co-ordinating Committee will be held at an early date.

THE WAR OFFICE.

1st July, 1926.

Additional Information for the Estimates Committee with Reference to Question 1848.

Question.

The total cost and numbers of Equipment and Ordnance Stores Directorate and cost per £100,000 of money expended on Clothing Equipment and Stores (Votes 7 and 8) for 1913-14.