HC Deb 24 July 1975 vol 896 cc305-6W
Mr. Gray

asked the Secretary of State for Scotland if he will make a statement about the tenders received for the Kessock Bridge on the A9.

Mr. William Ross

Four tenders for Kessock Bridge have been received. The lowest—for over£30 million—was submitted by a consortium of three steel erection firms, and the other three by firms who would employ the consortium as subcontractor for the steel work which represents about one-half of the tender price. The lowest tender was subject to very considerable qualifications and, as it stands, is unacceptable.

The decision to provide a new route for A9 across the Black Isle was announced in April 1971 and the preliminary design study by the consulting engineers estimated the cost of the bridge in August 1972 at about£6 million. While, as the design was developed and as economic conditions changed, it became clear that the cost would be much higher, a figure as high as£30 million was never contemplated. Nor was it foreseen, in April 1971, that the bridge would have to be built in competition for skilled labour with the oil production platform yards at Nigg and Ardersier. The consortium has pointed out that it was this factor, as well as the uncertainties of the current economic climate, which made it very difficult to price a contract extending over so long a period as three years.

In these circumstances, I have to consider whether the commitment of as large a sum as£30 million on this one project can be justified—especially at a time when public expenditure must be restrained—or whether the project should be deferred for the time being. Before a decision can be reached on this, it will be necessary to examine a suggestion made by the consortium that, owing to the scale of the contract and current uncertainties arising from the economic climate, an alternative form of contract should be considered for appropriate parts of the work. It will also be necessary to con- sider the possibility of adopting a more economic design and/or an alternative form of construction.

My Department has commenced discussions about these points and about other questions which the tender raises. I shall make a further statement as soon as it is practicable to do so.