§ Sir F. Sandersonasked the Parliamentary Secretary to the Ministry of Supply (1) whether he will give a list of contracts which are still functioning on a cost plus 10 per cent, basis; and approximately when he expects this form of contract will come to an end;
2262W(2) whether he is now in a position to state that no further contracts based upon cost plus 10 per cent., are being, or will be, placed?
§ Mr. Harold MacmillanContracts on the basis of the payment of actual ascertained costplus a percentage of cost as profit are only resorted to in cases where it is not possible to estimate the extent or cost of the work, as for example, certain repair work. As a result of the urgent need for repair of machine tools which arose at the end of last year, a scheme was adopted for the placing of running contracts for this work with a considerable number of firms. It is not considered advisable at this stage to revise this arrangement. I do not anticipate that conditions in the future will be such as to permit the complete elimination of this type of contract. It would not be in the public interest to publish a list of the firms concerned.