HC Deb 30 November 1938 vol 342 cc421-2
73. Sir Murdoch MacDonald

asked the Minister of Transport what is the present position of the contract between the Government and Messrs. David Mac-Brayne for the provision of transport services in the Western Highlands and Islands, which was terminable on 31st October, 1938?

Mr. Burgin

The contract in question expired on 31st October last. Negotiations for a new contract have not yet been concluded, and a supplementary contract was made on 31st October continuing the old contract on the same terms until 31st December, 1938.

Mr. Malcolm MacMillan

Can the right hon. Gentleman say why the other contract was provisionally arranged without consulting Parliament or the Members concerned in any way?

Mr. Burgin

I cannot answer in regard to the original contract, but a supplementary contract for two months has been entered into on the old terms to enable negotiations for a proper new contract to be concluded. That seems to me to be an essential, commercial, businesslike proposal.

Mr. Maxton

Why has the original contract, which was a long-term contract, been allowed to expire without any consideration for a new one?

Mr. Burgin

That is an assumption which the hon. Gentleman is making. He says, "without any consideration for a new one." Negotiations for the new contract have been in hand for some time. To enable them to reach a successful conclusion, the old contract has been continued on the same terms for a period of two or three months.

Mr. Maxton

Can the right hon. Gentleman tell me why with a contract of this nature it has not been possible to come to a conclusion about the future contract?

Mr. Burgin

A contract to be of real value must be a contract of mutual benefit and satisfaction. It is a contract between Messrs. David MacBrayne for mails, passengers, and goods, and a number of other interests, and the free negotiation of the new contract has been in hand for some time. I am quite confident that when the proposals are submitted to the House for a new contract they will meet with approval.

Mr. Maxton

Why could not it have been done at the right time?

Mr. Malcolm MacMillan

While thanking the right hon. Gentleman for his very full reply, may I ask whether he can give some indication as to when we are likely to be able to discuss the new contract?

Mr. Burgin

As I have told the House, the supplementary contract continuing the old contract runs until 31st December this year. That means a belief on the part of His Majesty's Government that the new contract will have been negotiated within the interval, and I hope the House will have an opportunity of discussing it at an early date.

Mr. Davidson

Did the Minister's Department have any consultation with interested parties before re-establishing the new contract?

Mr. Burgin

I am not quite sure what the hon. Member means.