§ 61. Sir John Mellorasked 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. MabaneI 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. MellorDoes 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. MabaneThis 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. MellorIs it not a fact that cost-plus contracts are only for cases of exceptional urgency? What safeguard is there for the Exchequer?
§ Mr. MabaneThere is no responsibility on the Exchequer. The local authority has to repay the capital.