HC Deb 02 March 1978 vol 945 cc328-9W
Mr. McCrindle

asked the Secretary of State for the Environment whether contracts between the Property Services Agency contain a requirement that all sub-contractors comply with the Pay Code; and what advice is given to assist the principal contractor in policing the pay settlements of such sub-contractors.

Mr. Marks

The current conditions of contract require that subcontractors comply with incomes policy, including the 12-month rule and pay guidelines in Command 6882. Contractors have been advised to get in touch with the Department of Employment if they need guidance on incomes policy.

Mr. McCrindle

asked the Secretary of State for the Environment, in the event of the Property Services Agency terminating a contract because of violation of pay code by a sub-contractor, what compensation is payable to the principal contractor if he has complied with the pay code.

Mr. Marks

The new Government contract clause makes no provision for such compensation.

Mr. Grocott

asked the Secretary of State for the Environment which aspect of those nationalised industries for which he is the sponsoring Minister is constrained by cash limits; what is the amount of cash limit imposed in each case; what is the performance of the industries against these limits; what proportion was used to cover up operating losses; and what proportion was used to finance investment.

Mr. Shore

British. Waterways Board. A limit of £2 million was imposed in 1977–78 on the amount of external finance. It is estimated that the external finance raised during the year will amount to £1 million. The whole of this has been used to finance investment.

The grant in aid which is provided to meet the Board's operating losses is not itself subject to a cash limit but it has to be accommodated in a total cash block for central and miscellaneous services of the Department.