§ Mr. Heddleasked the Secretary of State for the Environment (1) if he will publish a review of the workings of the direct labour legislation as contained in the Local Government Act 1980 during its first year of operation;
(2) whether he is satisfied with the workings of the direct labour legislation, as included in the Local Government Act 1980, during its first year of operation; and if he will make a statement.
§ Sir George YoungWe concluded that there was far too little competition over wide areas of DLO work during the first year of the DLO legislation. Requirements for increased competition for highways and minor building maintenance work were therefore introduced on 1 October 1982. We have recently issued our proposals for requiring even more competition between DLOs and contractors.
The annual reports that authorities are required to produce already provide publicly available information about DLO activities. We have issued directions as to specific information that authorities must include in these reports for 1982–83 and subsequent years.
My Department is currently studying the 1981–82 reports, and we shall continue to keep the operation of the legislation under close scrutiny.
§ Mr. Heddleasked the Secretary of State for the Environment (1) whether he will bring forward further measures for ensuring that direct labour organisations are fully tested in fair and frequent competition with private sector contractors; and if he will make a statement.
(2) whether he will bring forward proposals to decrease the compulsory tendering threshold from £50,000 to £30,000 for the highways category of work carried out by direct labour organisations; and if he will make a statement;
(3) whether he will bring forward proposals to bring the highways competition rules into line with those of other types of new construction by the introduction of the requirement that 30 per cent. of all work below the current £50,000 threshold should also be subject to mandatory competition; and if he will make a statement.
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§ Sir George YoungMy Department's consultation paper issued on 14 December 1982 contains wide-ranging proposals for requiring additional competition between direct labour organisations and private building and civil engineering contractors.
§ Mr. Heddleasked the Secretary of State for the Environment whether he will call for a special report from each local authority's direct labour organisation in England and Wales under the provisions of section 17 of the Local Government Act 1980.
§ Sir George YoungNo. But consideration will always be given to selective use of section 17 in individual cases where circumstances warrant it.