HC Deb 02 February 1943 vol 386 cc752-3
56. Sir J. Mellor

asked the Chancellor of the Exchequer whether he is aware that local authorities are permitted, as agents for the Government, to enter into contracts on a cost-plus-profit basis for the establishment of British Restaurants; and what Treasury supervision is exercised in view of the Exchequer liability contingent upon restaurants failing to earn profits sufficient to repay advances?

Sir K. Wood

I am aware that some local authorities, acting as principals and not as agents of the Government, have entered into contracts on a cost-plus-profit basis for the establishment of British Restaurants. The supervision of local authorities in respect of British Restaurants is exercised by the Ministry of Food, and I would refer my hon. Friend to the replies given to him by the Parliamentary Secretary to the Ministry of Food on 25th November, 2nd and 9th December, 1942, and 19th and 20th January, 1943.

Sir J. Mellor

How can my right hon. Friend say that the local authorities are acting as principals when no ultimate financial liability falls upon them?

Sir K. Wood

I think that an answer was given on that point by the Parliamentary Secretary, who pointed out the interest of the local authorities in the matter.

Sir J. Mellor

But there is not ultimate financial responsibility at all.