HC Deb 09 November 1970 vol 806 cc70-2W
Mr. Pavitt

asked the Chancellor of the Exchequer what steps he will take to protect public expenditure with regard to Government contracts when the only source of supply is a monopoly group or an international cartel in which that group has profit-sharing agreements.

Mr. Patrick Jenkin

If the Government found it necessary to place contracts in other than a commercial competitive situation it would seek to ensure that the contract contained appropriate safeguards. These would be such contract conditions as provision for equality of information and the right to carry out a post-costing of the contract. The Government would seek to negotiate a price for the contract that was in accordance with the provisions of the profit formula for non-competitive contracts, as agreed with industry.