A DIRECTOR'S PAY.

Auckland Star, Volume LXXI, Issue 14, 17 January 1940, Page 5

A DIRECTOR'S PAY.

£500 TO £15,000.

WAR ON PROFITEERS.

SUSPECTS WONT SHOW BOOKS

(Special.—By Air Mall.)

. LONDON, December 23. The managing director of a firm working on Britain's national defence programme had his salary increased from £500 to £15,000.

This is one of the revelations made this week by Sir Alan Barlow, Treasury Under-Seeretary, in his report of evidence given to the Select Committee on Estimates. x

"The cost accountant, when investigating overheads, looks for excessive charges of that, sort," said Sir Alan. "Last year the accountants disallowed what they thought were excessive payments to two of the managing staff of the firm. The accountants said, It is for you to decide whether you pay these sums, but you pay them out of profits and not as a debit to the Government., "

Treasury suspicion that machine-tool makers engaged in the national defence programme were making excessive profits was met by a blank refusal of firms concerned to submit their books to costing, Sir Alan said. The money involved was "pretty considerable."

The panel of industrialist* set up by the Prime Minister w.as consulted, and it said it thought that the Machine Tool Association ought to do better. This request was put to the association, but it had not replied.

The Air Ministry suspected that prices paid by the main contractors for a certain important material were high, and it asked for costing. One of the firms agreed, but the other three refused. A threat to deprive the firms of contract* would be futile, as the product* «*•' essential.