HC Deb 03 December 1975 vol 901 cc1678-80
16. Mr. Durant

asked the Secretary of State for the Environment when he expects to publish the report of his working party which is looking at the operation of direct labour departments.

Mr. Freeson

It is too early to say when the working party will report.

Mr. Durant

The Minister's reply was most disappointing. Is he aware that an increasing number of these departments provide very unfair competition with small builders and the self-employed, and cost the ratepayers money? What is the Government's attitude to the proposed West Midlands Bill which is to extend the scope of local authorities in tendering?

Mr. Freeson

I do not know why the hon. Gentleman should be disappointed with my reply. The working party was announced only about four weeks ago. I suspect that the hon. Gentleman wanted to have a go anyway, and I suppose that is a good practice in the House. On the matter which the hon. Gentleman raised, I merely say that at this stage we should wait for the working party's report. Let us see what results come from it in terms of further developments in this area. However, in the meanwhile, let us not assume that efficiency in the building industry is to be found in only the private sector. Let us consider the need for efficiency wherever it is required, and not knock the concept of public enterprise in this area just for the sake of doing so.

Mr. Hooley

Is my hon. Friend aware that the direct works department in Sheffield has run into rather serious legal difficulties in tendering for an important public project which the Yorkshire Water Authority wishes to carry out? Will he examine urgently the legal constraints on that department, which may cause serious unemployment if it is not allowed to go on tendering for projects which, from its experience and skill, it is well able to do?

Mr. Freeson

This area generally is already the subject of some examination by the Department, although until now I had not taken on board the point that my hon. Friend raised. I certainly undertake to consider this matter and bear it in mind when looking generally at the relationship of direct works departments to tendering for work in their areas, not necessarily confined to the services of the local authorities which run the departments.

Mr. John H. Osborn

Will the Minister examine the complaint of the Federation of Civil Engineering Contractors against the South Yorkshire County Council? Although, in theory, the council believes in tendering for major contracts, the Sheffield-Rotherham link road was given to direct labour without there being a tender.

Mr. Freeson

That decision was entirely for the county authorities. It was not a Ministry road scheme. In any case, I understand that two other projects are coming forward from the same authority which will be open for tender.

Mr. Cryer

Does my hon. Friend accept that direct works departments have a very honourable and successful record of social enterprise over the past few years? Does he also accept that if it were not for those departments the number of trained building employees would have virtually dried up, because at least 50 per cent. of all apprentices in the building industry are employed by direct works departments, and private enterprise has signally failed because of the perpetration of the "lump" which has led to shoddy work and low standards?

Mr. Freeson

As I said before, although briefly, one should look for quality and efficiency wherever it is required. My hon. Friend has raised an important point, which is too often overlooked by those who, in this area, are concerned simply to attack public sector activity for the sake of it. Direct works organisations throughout the country have been largely responsible for maintaining good employment and training practices in the industry.