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Road Construction Programme

Volume 984: debated on Thursday 15 May 1980

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asked the Minister of Transport if he will explain why the factor used to convert 1980 survey prices to 1980–81 outturn prices, as implicit in the appendix on page VI-21 of the Supply Estimates 1980–81 differs substantially from that given on page VI-ii; and whether this has any implications for the road construction programme in the current year.

The factors implicit in the appendix on page VI-21 of the Supply Estimates 1980–81 are derived directly from the pay and price movements given on page VI-ii. The differences arise because the former provide for revaluation over less than a full year, that is from 1980 survey prices (November 1979) to average 1980–81 prices; and because they include an allowance for the time lag between the completion of work and payment for it. The Estimates provision is therefore sufficient to meet the cash requirements of the programme on the basis of the assumed movements in pay and prices.