Direct Labour Departments (Hansard, 14 July 1976)

§ 23. Mr. Frank Allaun
asked the Secretary of State for the Environment if he will make a statement on his discussions with local authorities over permitting council direct labour departments to build houses for neighbouring local authorities.

§ Mr. Freeson
I accept the need for greater flexibility for local authority direct labour organisations to undertake work for other authorities, and I propose to introduce legislation as soon as possible.

§ Mr. Allaun
May I warmly congratulate the Government—[Interruption.] I know that it is a bit of a change for me to do that—on accepting this vital point? Could the legislation be introduced in the autumn, to start in January—

§ Mrs. Kellett-Bowman
The Government will never get it through.

§ Mr. Allaun
—as many local authorities and MPs have been pressing for it, particularly as it would save some highly efficient direct labour departments—

§ Mrs. Kellett-Bowman
There are no efficient direct labour departments.

§ Mr. Allaun
—such as Manchester and Sheffield, having to cut back on the numbers they employ?

§ Mr. Freeson
I seemed to detect from some of the interruptions a somewhat doctrinaire and ideological approach to the matter. I am well aware of the anomalies that have been created, largely as a result of the 1972 local government reorganisation. We have introduced temporary Orders, which will cover the period until March 1977, and we shall have to deal with the situation that follows. It will not be necessary for us to act now to change the situation, but we shall bear in mind the time-lag problem.

§ Mr. Speed
I understand that the Minister has never been prepared to accept the CIPFA recommendations because he has always said that he must wait for the report of the working party that has been set up, yet he is prepared to introduce legislation in advance of the working party's report. That is being doctrinal and ideological.

§ Mr. Freeson
The hon. Gentleman could not have listened with his usual care to previous answers that I have given when I have tried to explain the position. We are dealing with legal powers for the local authorities to use direct labour organisations. What the working party and the CIPFA report are concerned with is the method of operating the direct works departments concerned. There is no pre-emption of any recommendations that will come from the working party or any consideration of the CIPFA report, which I shall be taking into account as far as I can when we introduce legislation.