§ 59. Mr. Rentonasked the Chancellor of the Exchequer to what extent the cost-plus method of paying for Government contracts for public works is still used; and whether he will introduce a more satisfactory method of payment, which is less wasteful of public money.
§ The Financial Secretary to the Treasury (Mr. Henry Brooke)It is the general policy that Government Departments should not enter into cost-plus contracts for public works, but in some cases, for example, where the work to be done is of an exceptional nature, or unusually difficult to cost in advance, it is not always practicable to adhere to this rule.
§ Mr. RentonIs my right hon. Friend aware that, in spite of what he has said, the cost-plus method is used far too widely and that it is an invitation to contractors to charge as much as possible? Will he aim, with the Chancellor, to have the practice eliminated as soon as possible?
§ Mr. BrookeThe Treasury's desire is that that method should be used as little as possible. If my hon. and learned Friend would like to draw my attention to any case in which he thinks the cost-plus contract has been entered into unnecessarily, I should be very glad to examine it.