§ 62. Mr. Marksasked the Minister of Public Building and Works whether he will make a statement on his policy regarding the proposals made to him by the Federation of Civil Engineering Contractors that a tax fluctuation clause in respect of changes in taxation on site labour and materials should be included in the I.C.E. Conditions of Contract for Civil Engineering Works.
§ Mr. John SilkinThe Government have decided to raise no objection to the46W introduction of a tax fluctuation clause in the I.C.E. General Conditions of Contract to allow for adjustments in respect of tax changes affecting the cost of site labour. The proposal to include tax changes affecting materials cannot be accepted, because of the difficulty in isolating variations in material costs incurred by contractors attributable solely to tax changes.
It has also been decided to amend the tax fluctuation clause in the General Conditions of Government contracts for Building and Civil Engineering Works (CCC/ Wks/1) at present related only to changes in selective employment tax on site labour, so as to provide for adjustments in respect of all tax changes affecting the cost of site labour.