HC Deb 02 December 1942 vol 385 c1161
61. Sir John Mellor

asked the Parliamentary Secretary to the Ministry of Food whether he will identify the British Restaurants in respect of which contracts on a cost plus profit basis have been approved, stating in which cases that form of contract was allowed on the ground of urgency?

Mr. Mabane

I would refer my hon. Friend to the answer given to his Question of 25th November. Subject to the limits set by estimates approved in advance, local authorities make their own arrangements for carrying out building work for British Restaurants. Particulars of the contracts into which they enter are not submitted to my Department and the information asked for is therefore not available.

Sir J. Mellor

Does my hon. Friend tell me that the local authorities have a free hand as to the form of contract into which they enter, and is there any Exchequer burden involved?

Mr. Mabane

This is a local authority responsibility. The local authority submits estimates of the cost of the proposed restaurant; the Department approves the estimate or disapproves it, and the local authority has to provide the restaurant within that estimate of cost. It has to provide out of the running of the restaurant for the repayment of the capital which is spent.

Sir J. Mellor

Is it not a fact that cost-plus contracts are only for cases of exceptional urgency? What safeguard is there for the Exchequer?

Mr. Mabane

There is no responsibility on the Exchequer. The local authority has to repay the capital.