HC Deb 06 December 1976 vol 922 cc11-2
10. Mr. Grist

asked the Secretary of State for Wales what representations he has received on the subject of local authority direct labour building operations; and if he will make a statement.

Mr. Alec Jones

We have received representations both for and against the greater use of direct labour organisations from various sources, including local authorities, bodies representing the building and construction industry and individuals. It was announced in the Gracious Speech that legislation will be introduced this Session to remove unnecessary restrictions on the powers of local authorities to undertake construction work by direct labour.

Mr. Grist

Is the hon. Gentleman aware of the degree of hostility that the Government's proposals will evince among ratepayers, who will have to bear the burden of the losses of these uncompetitive departments, as well as among private builders and their employees? Will he give an undertaking that any extension of direct labour organisations will mean that the accounts for direct labour will be on the same basis as for commercial undertakings?

Mr. Alec Jones

I well understand the hon. Gentleman's hostility to this proposal. The Government will encourage efficient direct labour organisations. It is also the Government's intention that full and fair comparisons between direct labour organisations and private industry will be possible.

Sir Raymond Gower

Will the hon. Gentleman bear in mind that although local authorities and direct labour undertakings have to find work for their employees, many smaller building undertakings have a much more formidable task? They also have staffs and employees. Will the hon. Gentleman take account of the needs of those employees as well as the needs of builders and other employers?

Mr. Alec Jones

The Government are concerned to protect the jobs of workers in the private enterprise construction industry as well as to protect the jobs of workers in direct labour organisations.

Mr. Wyn Roberts

Is the hon. Gentleman aware that much of the increase in local government staffing since reorganisation has been due to an intake of direct labour? Does he agree that an increase in direct labour will mean an additional burden for the ratepayer to bear?

Mr. Alec Jones

No, I do not accept that an increase in direct labour organisations means a direct increase in any burden on the ratepayer. I recommend that the hon. Gentleman reads the words of my right hon. Friend the Minister for Housing and Construction where he indicated that the criteria of the Bill would be tougher than recommended by the Chartered Institute of Public Finance and Accountants.