Mr. Bertrand (Laurier):

I want to see them.

Mr. Bertrand (Laurier):

It is 30-7 per cent on all those contracts. Each of those contracts is at a different price, and the general increase is 30-78 per cent.

1956

Mail Contracts

Mr. Bertrand (Laurier):

Well, I am talking with some of the lawyers who know very well the law of tender. I believe it is the same in all the provinces. After all, these are still tenders, although because of special circumstances they have been modified in the last two years.

The tendency today is to go back to normal conditions. The hon. member must know what would happen if on March 31 we were to say, "We cannot renew these contracts with the bonuses you had last year"-and which in fairness they should have this year. Otherwise we would have to ask for tenders in eight or nine thousand cases.

I cannot send notices to six or seven thousand contractors who are satisfied, asking them if they want to make application for the supplement. Surely that would not be businesslike procedure.

Mr. Bertrand (Laurier):

The total payments per annum under the original contracts amounted to-that is the 6,485 contracts- $4,993,000. As of September 30, 1948, the total supplementary payments on those 6,485 contracts amounted to $1,537,000. This meant the total payments amounted to $6,530,000, representing an increase in cost by reason of the supplementary payments of 30-78 per cent. I believe that amount explains the increase in costs.

During the same period of time we had to renew contracts by tender in the case of contractors who had died or resigned. Those contracts renewed by tender amounted to 1,143. The total payments under the old contracts that were renewed by tender amounted to $765,000. The total payments under the new contracts after the tenders had been received amounted to $1,052,000. The increased payments on the 1,143 contracts amounted to $287,254. The percentage increase for these contracts amounted to 37-5 per cent. You can see there was an increase of about 7 per cent on the contracts renewed by tender over the contracts under which supplementary payments were made.

Mr. Bertrand (Laurier):

As of September 30, 1948, there were 11,933 contracts in force. Supplemental payments were made on 54 per cent of those contracts, that is on 6,485 contracts.