HC Deb 28 July 1964 vol 699 cc256-7W
Sir Ian Orr-Ewing

asked the Minister of Transport what information he has concerning losses incurred by some firms in the civil construction industry who have tendered for fixed price contracts for roads and bridges; and what representations they have made to him to make good these losses.

Mr. Marples

I have some evidence of losses said to have been sustained on road construction contracts, but I have no general documented information on the subject. Road construction contracts are let following competition by tender.

Some firms, when making claims for the payment of sums due under contracts, have submitted that the contract has resulted in a loss, and have suggested that this should be taken into account in the settlement of such claims. Other firms have asked for an ex gratia payment in mitigation of losses sustained. It is not customary to disclose information volunteered by firms in this way in the course of commercial dealings.

£ MILLION
New construction and major improvements Maintenance and minor improvements
Exchequer Local Authority Total Exchequer Local Authority Total
1945–46 … … .6 .3 .9 8.3 20.8 29.1
1946–47 … … 1.3 1.2 2.5 18.7 22.9 41.6
1947–48 … … 2.8 1.9 4.7 21.0 27.7 48.7
1948–19 … … 2.7 2.6 5.3 17.5 27.2 44.7
1949–50 … … 3.4 2.6 6.0 20.0 30.0 50.0
1950–51 … … 3.7 2.6 6.3 18.9 30.2 49.1
1951–52 … … 3.3 2.9 6.2 23.7 33.3 57.0
1952–53 … … 3.7 2.6 6.3 25.8 34.7 60.5
1953–54 … … 3.7 4.1 7.8 26.5 35.8 62.3
1954–55 … … 4.3 4.7 9.0 29.5 38.6 68.1
1955–56 … … 7.4 5.8 13.2 31.5 42.2 73.7
1956–57 … … 15.0 7.0 22.0 31.9 44.2 76.1
1957–58 … … 21.8 7.6 29.4 34.2 45.9 80.1
1958–59 … … 47.1 10.3 57.4 32.8 47.5 80.3
1959–60 … … 59.6 12.5 72.1 34.8 50.5 85.3
1960–61 … … 57.9 17.2 75.1 36.6 53.4 90.0
1961–62 … … 71.5 19.6 91.1 41.3 56.1 97.4
1962–63 … … 94.8 21.9 116.7 41.7 57.0 98.7
*1963–64 … 123.5 23.5 147.0 48.5 63.5 112.0
* Provisional.

The figures in the table are based on returns made by local authorities shortly after the end of each financial year. The returns indicate the value of roadworks done in the year. Because, in some cases, Exchequer payments to local authorities are made in advance of the work to which

New construction and major improvements Maintenance and minor improvements
Exchequer Local Authority Total Exchequer Local Authority Total
1964–65 … … 145.5 26.5 172.0 57.0 65.0 122.0
1965–70 … … 1,040.0 210.0 1,250.0 300.0 325.0 625.0