§ 45. Sir John Mellorasked the Lord President of the Council why competitive tenders have not been invited before making important contracts for the Festival of Britain; and why payments are to be made on a cost-plus basis.
§ The Lord President of the Council (Mr. Herbert Morrison)Competitive tenders have been used for Festival of Britain contracts to the fullest extent consistent with getting the work completed by the opening date. On the South Bank site the general contractors for building work were appointed without competition because they were already working on the site as contractors for the London County Council. The introduction of additional general contractors on so small and congested a site would have given rise to confusion. Most of the sub-contracts for building work placed by these general contractors were after competition. Nearly all other contracts on the 1339 South Bank and at other Festival exhibitions, except for small sums, were placed competitively by the Festival Office.
The answer to the second part of the Question is that cost-plus has only been used where it would have been impossible to get the work done on any other basis. The number of cost-plus contracts is less than half a dozen and the total value involved is relatively small. A brief note of any cases between £2,000 and £5,000 is sent to me monthly and larger cases are submitted for my prior authority where time permits.
§ Sir J. MellorIf the Festival had been properly planned, would not the need of haste have been avoided and these contracts made in a more businesslike way?
§ Mr. MorrisonThe Festival was properly planned, and the answer to the second part of the supplementary is in the negative.
§ Mr. BossomCould the Minister say whether the contract work is up to date, or whether it is running behind schedule?
§ Mr. SpeakerThe Question only asked about competitive tenders.