WASTE OF PUBLIC MONEY

Evening Post, Volume XCV, Issue 62, 13 March 1918, Page 5

WASTE OF PUBLIC MONEY

SEVERE;INDICTMENT OF MUNITIONS DEPARTMENT [{AUS'TBALIAN-NEW ZEALAND CABLE ASSOCIATION.) (Received March 13, 8.30 a.m.) LONDON,'I2th March. A severe indictment, of the Ministry of Munitions is the feature of the report of the committee which has been enquiring into national expenditure; The Ministry erected national factories valued at sixty T six millions, and granted private firms sixteen millions to meet' capital expenditure. The Ministry s officers are the only security the taxpayer has that these enormous sums were wisely spent The sum of three 1 millions was saved on cordite alone fey reduction of prices after accountants had investigated the cost, and similar investigations had resulted in savings of thirty-five millions in the cost of gun ammunition during the two years ended in September, 1917,' as compared with the first year of the war. In another case, a contract for > guri equipments was £7,750,000, which was reduced by two millions after a Government accountant had investigated the contract. . , „ , > The report states that another company took- an engineering contract for four millions sterling, made a profit of £1,300,000, and then offered a considerable rebate for a further order, on which it made a second profit of half_ a million.' The firm refused any arrangement, pending an investigation of its The committee proposes to check this profligacy by an effective control of costings* fixing rates of ■profit, and Strengthening the authority of the Finance Department;