HC Deb 14 March 1967 vol 743 cc194-5
20. Mr. Eyre

asked the Minister of Housing and Local Government if he will publish the Society of District Auditors' Report to him on the accounting system of direct labour authorities.

The Joint Parliamentary Secretary to the Ministry of Housing and Local Government (Mr. Mellish)

The District Auditors' Society, acting on its own iniative, has made an interesting study of cost control in local authority building departments. The study was prepared for the benefit of the Society's members, but the Society has kindly made it available to the Department. My right hon. Friend has just received it, and he will consider with the Society the question of publication.

Mr. Eyre

Is the right hon. Gentleman aware that there have been recent reports of very serious cases disclosing waste and inefficiency in these Departments? In the light of these abuses, will he consider restoring public confidence by withdrawing the 1965 circular?

Mr. Mellish

We had some interesting debates on direct labour when we were considering the Housing Subsidies Bill. I think that the hon. Gentleman would be the first to agree that much of the argument on his side of the House was over-stated.

Mr. Heffer

is my hon. Friend aware that the building industry as a whole suffers from precisely this question of waste and inefficiency, and that it is not confined to one or two direct labour authorities? If he is to institute an inquiry into this, will he institute it into the whole of the building industry?

Mr. Mellish

On this matter my right hon. Friend and I are already on record as saying that we are not prepared to support inefficiency whether from direct labour or from private enterprise.

Mr. Rippon

Is the hon. Gentleman aware that we will all be very happy if the report is published in due course? So far from having over-stated the case, we on this side of the House have probably under-stated it. Will the hon. Gentleman agree that the output per man, both for new work and for maintenance, in direct labour departments is far below that of the private sector?

Mr. Mellish

No, Sir. I do not accept that, and I say again that the party opposite over-stated its case, because last year, out of the total of 185,000 public authority houses. 16,000 were built by direct labour. Two individual direct labour schemes were bitterly attacked. The truth is that the vast majority of them are efficient and are doing a first-class job of work.