HC Deb 05 February 1968 vol 758 cc14-5
19. Mr. Goodhew

asked the Minister of Public Building and Works what representations he has received from builders about the effect of devaluation on fixed-price contracts let by his Department; and what reply he has sent.

Mr. Mellish

I have received representations from the National Federation of Building Trades Employers and the Federation of Master Builders, and I have said that, if there are exceptional cases of hardship on firm price Ministry contracts, my Department would be prepared to consider makingex-gratiapayments if it can be shown that losses on the contract as a whole have been suffered as a direct result of devaluation.

Mr. Goodhew

Would the right hon. Gentleman not agree with Mr. Kirby Laing of the N.F.B.T.E. when he says that the Government-imposed charges like S.E.T. and devaluation undermine the whole basis of fixed-price contracts, which were urged by Banwell, and which he, with his Ministry, supposedly, supports?

Mr. Mellish

I have great respect for Mr. Kirby Laing and his association, but I do not necessarily agree with their figures. I have said—and I repeat this question—to those who claim to have suffered hardship on the contract as a whole: if they come to us, we as a Ministry will certainly do all that we can to help, but it must be shown that an actual loss has been made on the contract as a whole. I will not give, and I hope hon. Gentlemen opposite will support me, an automatic increase apropos devaluation on all those contracts as a whole. It would not be right.

Mr. Costain

Would not the Minister agree that with the present high Bank Rate a number of small builders are suffering financial hardship? Will he give interim payments when hardship can be proved?

Mr. Mellish

The hon. Gentleman will be interested to know that a meeting has been arranged for 9th February between representatives of the N.F.B.T.E., officials of my Ministry, and those from the Ministry of Housing and Local Government. These questions will be discussed. There is a great deal of good will and, I hope, understanding on these matters.