HC Deb 19 January 1977 vol 924 cc308-9
7. Mr. Ridley

asked the Secretary of State for the Environment under what authority the Property Services Agency informed the National Federation of Building Trades Employers that it will only consider tenders from those contractors who hold a valid tax certificate at the time of tender; and why he is discriminating against sub-contractors who do not hold the certificate in this way.

Mr. Marks

The Property Services Agency has made clear that it is prepared to employ a contractor or subcontractor who does not hold a tax certificate but only if it is a genuine firm with a good reason for not holding a certificate.

Mr. Ridley

Is the hon. Gentleman aware that that is not good enough? First, it has not been true until this moment, when he said what he said. Secondly, what does he mean by "genuine" firms which have a good reason for not holding a certificate? The Minister's colleague, the Under-Secretary of State, the hon. Member for Durham, North-West (Mr. Armstrong), told me only this morning that there would be no discrimination against contractors who did not hold certificates. Will the Minister make it clear throughout the whole public sector and the Government that this is to be so?

Mr. Marks

I have made it clear to the National Federation of Building Trades Employers that the contractors are not refused, and, in fact, the form that they are sent if they wish to submit tenders includes provision for stating the fact that they may not, for a number of reasons, have tax certificates. However, we shall not employ firms which are on the "lump", or fly-by-night firms, or anything of that category.

Mr. Heffer

Is my hon. Friend aware that on the Labour Benches and certainly among building trade unions his statement will be very widely welcomed? Is he aware that the problem in the construction industry in the past has been that we have had these fly-by-night subcontractors and that all sorts of terrible problems have arisen from using "lump" contractors? The Government should be congratulated on the stand that they have taken on this matter.

Mr. Marks

I think that my hon. Friend has given the reasons why this was laid down in the Finance Act 1975. Although the Property Services Agency is a Department of the Crown and is exempted from the Act, we try to carry out the spirit of the Act.

Mr. Ridley

On a point of order, Mr. Speaker. In view of the unsatisfactory nature of the reply, I beg to give notice that I shall seek the earliest possible opportunity of raising the matter on the Adjournment.