§ 98. Mr. Biggs-Davison
asked the Minister of Housing and Local Government whether he will circularise local authorities advising them to accept the proposal of the District Auditor' Society 35W that direct labour departments and local authorities should be required to compete with private contractors by means of tendering.
§ Mr. Mellish
The District Auditor's Society's report refers to the advisability of putting schemes to competition from time to time as a guide to the efficiency of direct labour organisations. The report is at present being discussed with the local authority associations, and my right hon. Friend will consider whether any further guidance to local authorities is required on any of the matters dealt with in the report. Existing advice to local authorities in Circular 50/65 includes a recommendation to put schemes out to competition if there is any doubt about whether direct labour costs are satisfactory.