A. Goninan & Co now operates the Preston tram workshops. Let's say they
spend $50,000 per year on green paint, and they are contracted to paint a
certin number of trams per year. If the price of paint goes up 10%, would
the Met paying Goninan an extra $5,000 per year for the same amount of
paint be considered a subsidy?
When long term contracts are signed, none of the parties expects costs to
remain static for the entire period of the contract.
Cheers
David