§ 17. Mr. Keelingasked the Secretary of State for War whether any recent contracts had been placed on a cost-plus-percentage basis; and whether he can give an assurance that all future contracts will be made either at a fixed price or on a cost-plus-fixed-profit basis?
§ Captain MargessonVery few contracts have been placed on the cost-plus-percentage basis in this country recently, and this form of contract is used only in very exceptional circumstances. As my hon. Friend the Parliamentary Secretary to the Ministry of Works and Buildings stated on 26th February last, it is not possible to give an undertaking of the kind suggested, but I can assure my hon. Friend that the use of this form of contract will be limited to cases where it is clearly the only suitable form.
§ Mr. HiggsIs my right hon. and gallant Friend aware that contracts are being placed before the prices are fixed, even when there is no necessity for doing so, and will he take steps to stop this practice?
§ Captain MargessonI think that that is perhaps a different point. Perhaps the hon. Member will put a Question down.