§ 28. Mr. Shinwellasked the Minister of Housing and Local Government and Minister for Welsh Affairs whether, in view of the failure of the Peterlee Corporation to reach its annual target of housing construction in 1959 and in the present year, the difficulty experienced through the failure of the principal contractor to meet his liabilities and the 1058 claim of some creditors that they were requested to supply the contractors with materials by representatives of the Corporation, he will institute an inquiry into the relations between the Corporation and the contractor and the reasons why the housing target will not be reached.
§ Mr. BrookeThe core of the trouble at Peterlee is that a firm which put in the lowest tenders and was awarded certain house-building contracts has gone into liquidation. The supply of materials to the firm was a normal commercial transaction. I know of nothing that would justify me in holding an inquiry into these matters.
§ Mr. ShinwellIs the right hon. Gentleman aware that there is considerable disquiet in Peterlee and the adjoining area because of the curtailment of the housing programme, and that various allegations have been made about the transactions undertaken between representatives of the Corporation and the contractor referred to? Is there not something to be said for conducting a Departmental inquiry—not necessarily of a public character to begin with, unless something transpires which ought to be reported — in the interests of all concerned?
§ Mr. BrookeI hope that if the right hon. Gentleman hears allegations of that character he will deny them. There is no truth in them whatever. A difficult situation has arisen here, as the right hon. Gentleman knows, through this firm having gone into liquidation before it completed its house-building contracts. I can certainly say that the special object of the Development Corporation and myself is to get those contracts completed as quickly as possible. I am seriously concerned lest a bad break in the completion of houses should occur.
§ Mr. ShinwellWhen we are faced with a situation in which a contractor incurs liabilities of between £450,000 and £600,000, surely it is a matter for some inquiry?
§ Mr. BrookeThe liabilities that a particular firm incurs when it is carrying out a public contract are not, in my submission, necessarily a subject for a public inquiry, or an inquiry of any sort. It is a matter between the contractor and 1059 the creditors. The firm is now in liquidation and no doubt all these matters are being pursued.