HC Deb 11 March 1968 vol 760 cc958-9
28. Mr. Allason

asked the Minister of Public Building and Works what representations he has received from the National Joint Consultative Committee about outstanding moneys due to contractors and builders from public bodies; and what replies he has sent.

Mr. Mellish

The N.J.C.C. has brought this issue to my attention. I have promised to investigate personally any specific complaint of delay on the part of my own Department—although our record is in general a good one. I have taken whatever opportunity offered—and will do so again—to urge the prompt payment of accounts in both public and private clients.

Mr. Allason

But as the figure involved at any one moment is estimated to be £500 million, are the public sector clients of the building industry, who represent about a third of the total, responsible for a due proportion of that sum, which represents a large amount in high interest rates?

Mr. Mellish

I think that the construction industry has every reason to complain about delayed payments, and some of the worst offenders are local authorities. I very much hope that they will mend their ways and see that, where good firms are doing a good job for them, they behave as first-class clients. It is about time that they did.

Mr. Chichester-Clark

Does the right hon. Gentleman see any prospect of any new action with the public sector clients in regard to speedier payment of retentions, which account for about 20 per cent of the outstanding money?

Mr. Mellish

The hon. Gentleman is right. This part of the money, retention payments, is not paid until some time after the job is completed. My answer is that, when a first-class firm is working for one, the best possible punishment in the future, if it does not do a good job, is not to give it any more work.