§ Mr. Roebuckasked the Minister of Public Building and Works if he is aware that many building companies costed contracts signed before 20th July last on the basis of an agreement with employees concerning periodical increases in wages which have not been paid owing to the prices and incomes policy; and what action he proposes to take to prevent the companies from making a profit out of the policy.
§ Mr. PrenticeI have no proposals to ask the firms concerned to revise their prices since contracts, once entered into, are legally binding. Thus, any attempt to revise the terms of these contracts would entail their renegotiation, which would permit counterbalancing claims by the contractors for such increases in costs as may have taken place since the contract was let or are now in prospect. This would breach the policy of firm price contracting in the construction industry, which has been a major factor in price stability in recent years.
§ Mrs. Renée Shortasked the Minister of Public Building and Works what additional expenditure has been incurred by his Director General, Research and Development, over and above £1,950,000 since its establishment; and if he will give details.
§ Mr. PrenticeExpenditure incurred by Directorate General of Research and Development in respect of its share of the Ministry's production programmes has been £2,702,000. This figure comprises of £1,292,000 on staff costs and accommodation and £1,410,000 on consultants' fees.