HC Deb 13 November 1974 vol 881 cc144-5W
60. Mr. Crowder

asked the Chancellor of the Exchequer if he is aware of the difficulties facing contractors to Government Departments supplying goods and services on fixed-price contracts entered into 18 months ago or earlier, in view of the increase in prices during that period; and if he is prepared to authorise an increased payment to contractors who are completing fixed-price contracts at an actual financial loss.

Mr. Joel Barnett

It is normal practice if a contractor so requests to give consideration to the making of an ex-gratia contribution towards a loss suffered on a Government contract where this loss is shown to be significant, to have arisen from circumstances outside the contractor's control, and to have resulted in serious hardship. Such consideration is not usually given until after a contract has been completed.