February 13, 1939 (18th Parliament, 4th Session)

CON

Robert James Manion (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. MANION:

I did not see much sign of it.
Then the government pays the cost of converting this factory into a gun manufacturing plant. Naturally, with all these things to be considered, the cost of the guns is unknown. I have heard it stated frequently, and I think the minister stated, that the cost of the guns is known. It is not; no one knows to-day what the guns are going to cost. Then, sir, on page 12 of the agreement there is a joker clause, which provides for payments in addition to the ten per cent, and I am sticking to the ten per cent because that is the figure used throughout the contract. Not only will the government have to pay that; under certain conditions they will have to pay more. It is stated that a standard price will be set for these guns; once that price is fixed, whether or not he gets anything in addition, will depend upon what Major Hahn does in regard to manufacturing costs. He can get a higher percentage if he manufactures these guns for less than the standard cost. Who is going to set that standard? It will be set by the minister and his department and Major Hahn. There is a very grave opening, to my mind, for some very peculiar work. This looks to me like a sort of joker in the contract.

Topic:   BREN MACHINE GUN CONTRACT
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