§ 25. Mr. K. Thompsonasked the Parliamentary Secretary to the Ministry of Civil Aviation under what circumstances it has become necessary for his Department to undertake the complete refurnishing of the residential accommodation at Liverpool Airport, Speke; what is the cost; and what part of this cost is to be recovered from the catering contractors in each year of their three-year contract.
§ The Parliamentary Secretary to the Ministry of Civil Aviation (Mr. Beswick)The furniture previously used was owned by the last catering contractor, who removed it after his tender for the new contract was unsuccessful. The cost of refurnishing was £1,400, and contractors will hire the furniture at 12½ per cent. per annum of its capital cost.
§ Mr. ThompsonWas it made clear in the form that was sent to the contractors in this case that they would be able to tender on the basis of the Ministry being responsible for furnishing the premises?
§ Mr. BeswickI understand that is so.
§ 26. Mr. K. Thompsonasked the Parliamentary Secretary to the Ministry of Civil Aviation if it is with his knowledge and approval that higher prices than previously ruling are being charged for meals and refreshments served at Liverpool Airport, Speke, by new catering contractors appointed by his Department.
§ Mr. BeswickYes, Sir, but I am satisfied that the present prices are fair for the meals and refreshments provided.
§ Mr. ThompsonIs the Minister aware that it is always competent for a contractor to tender at a higher price if he is satisfied that he will be permitted to charge higher prices for the commodities supplied to the public? Will the Minister say how the policy of allowing this to happen fits in with the general policy of the Government to reduce prices to the public, when they themselves are responsible for thus increasing prices to the public?
§ Mr. BeswickI am not quite sure what the hon. Gentleman is getting at. This applies equally to all tenderers.