§ Mr. Shinwellasked the Minister of Housing and Local Government and Minister for Welsh Affairs whether he is aware that the firm, the name of which has been sent to him by the right hon. Member for Easington, which was awarded the contract to build houses in Peterlee is unable to meet its liabilities and a meeting of its creditors has been called; whether any of the creditors are to be reimbursed by the Government; and to what extent.
§ Mr. H. BrookeI am aware of the position. Materials for these contracts were supplied to the contractor under normal commercial arrangements, and the Development Corporation has paid the contractor for all materials used. There can be no question, therefore, of any additional payment by the Government.
§ Mr. Shinwellasked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will state the conditions upon which the contract to build houses in Peterlee was agreed between the Corporation and a firm, the name of which has been sent to him by the right hon. Member for Easington.
§ Mr. H. BrookeThe contracts were the subject of open competitive tender, and were awarded by the Development Corporation to the lowest tenderer. The standard form of R.I.B.A. contract was used.
§ Mr. Shinwellasked the Minister of Housing and Local Government and Minister for Welsh Affairs whether he is aware that the Peterlee Corporation have agreed to make a cash payment of £250,000 to a firm, the name of which has been sent to him by the right hon. Member for Easington, against claims against them but without admission of liability; and whether this was done with his approval.
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§ Mr. H. BrookeWith respect to the right hon. Gentleman, his information is not correct. A sum of £25,000 is being paid by the Development Corporation, with my approval, in full settlement of a very much larger claim. Agreement on the amount due was reached after a detailed investigation by quantity surveyors on both sides.