12. Mr. Leeasked the Minister of Housing and Local Government for what purposes Circular 5/53, 10th February, 1953, relating to contracts of local authorities standing orders, was issued.
§ Mr. H. MacmillanThe Circular was issued because the provisions to which it refers had become an obstacle to the negotiation of building contracts.
Mr. LeeWould the right hon. Gentleman agree that Standing Order 13, which is rescinded by this Circular, makes it possible for local authorities to pay the employees of a contractor who has defaulted and then charge the contractor with the debt? Would the Minister say whether the trade unions concerned were consulted before he made this extremely important decision, and why it was that he did not make a statement in this House rather than issue a circular to local authorities?
§ Mr. MacmillanAs I tried to explain in my letter to the hon. Gentleman, this is a somewhat complicated point but there is no change which affects the fair wages resolution in any way. The Circular is meant to be purely advisory. As the hon. Gentleman knows, it is a complicated issue and this deals, I think, with only a small facet of the real problem.
§ Mr. PorterIs the right hon. Gentleman in a position to assure the House that the change proposed by this Circular 626 will in no way interfere with the operation of the fair wages resolution?
§ Mr. MacmillanYes, Sir.
Mr. LeeIn view of the unsatisfactory nature of that reply, I beg to give notice that I shall endeavour to raise the matter on the Adjournment.