HC Deb 02 July 1962 vol 662 cc25-6
29. Sir T. Moore

asked the Minister of Aviation what further steps he will take to obtain fresh tenders for the erection of the hotel at Prestwick Airport.

Mr. Woodhouse

The Ministry of Aviation has written to all the concerns who have at any time expressed interest in the proposition, to enquire whether there are any points in the terms proposed which have discouraged tenderers, and whether they wish to suggest an alternative basis on which they would be prepared to tender. Any suggestions will be examined, and if they are acceptable, invitations will be issued to all the concerns to tender on the amended basis.

Sir T. Moore

While thanking my hon. Friend for that reply, which shows a very close appreciation of the difficulties involved in building this hotel, may I ask him whether it is not obvious that as only one tender was received and it was unacceptable, the terms which have been put into the contract must be so rigid, unremunerative and complicated that no contractor can even afford to tender?

Mr. Woodhouse

I have a great respect for the business shrewdness of my hon. Friend's fellow countrymen, but in this case I do not understand why the terms should be regarded as rigid. One of the terms that we expressly proposed to tenderers was that they themselves should quote how much they would be prepared to pay in terms of a percentage of the gross takings as the price of the concession.

Mr. Emrys Hughes

Can the hon. Gentleman say whether the hotel at Prestwick is to be run in the interests of the nation, which was responsible for the heavy expenditure on Prestwick, or is to be handed over to speculative private enterprise?

Mr. Woodhouse

It is out to tender in the normal commercial way.