§ 7. Mr. Nabarroasked the Minister of Works, in connection with his policy for extending the area of fixed price contracts in a maximum value of £100,000, what arrangements he proposes to make to permit price variation or escalator clauses in such contracts in respect of any increased charges and tariffs by the 6 nationalised coal, gas, electricity and transport industries as may occur during the currency of contracts, and in consideration of the fact that private enterprise contractors have no control over the charges and tariffs imposed by nationalised industries.
§ Mr. Buchan-HepburnNone, Sir. The point of my experiment of seeking fixed price tenders for selected projects undertaken by my Ministry is to find contractors who are prepared to accept all risks of fluctuation in costs.
§ Mr. NabarroWhile fixed price contracts are a very desirable principle, how can the policy possibly be effective so long as nationalised industries, notably the coal industry, continue the sort of practice, announced this morning, of increasing the cost of coal, leading consequentially to increases in the price of gas, electricity, freights and steel, and to further wage demands? Will my right hon. Friend attack this matter at the source, that is, by a policy of stabilising nationalised industries' charges?
§ Mr. Buchan-HepburnI think that I should remind my hon. Friend that this scheme, which is limited at present to certain projects by my Ministry, is a voluntary one, and there is no compulsion whatsoever on anybody to come forward on the terms that we suggest. The wider subject which my hon. Friend raised is not for me to answer. It is a matter for the Ministers concerned with nationalised industries.