§ Sir Philip Goodhart
To ask the Secretary of State for the Environment what action he proposes to take against those local authorities whose direct labour organisations made significant financial losses in 1989–90, and on which notices were served on 31 July and 28 October 1991.
§ Mr. Key
My right hon. Friend has now considered carefully the responses of the 14 local authorities on whom notices were served under either section 19A of the Local Government Planning and Land Act 1980 or section 13 of the Local Government Act 1988 on 31 July and 28 October 1991. He has today given a direction under section 19B of the 1980 Act to the royal London borough of Kingston upon Thames which prevents it carrying out building maintenance work other than emergency work as from 31 October 1992. He is looking further at the responses of the London borough of Waltham Forest and Portsmouth city council (both building maintenance work).
He has decided to take no further action in respect of financial failure in 1989–90 against the London borough of Bromley (building maintenance), Worthing district council (building maintenance), Wychavon district council (building maintenance), Warrington borough council (building maintenance), Gosport borough council (other cleaning), Gloucester city council (refuse collection), Lewes district council (refuse collection), Shropshire county council (other catering), Surrey county council (other cleaning), and Waverley district council (refuse collection). He has already announced that no further action will be taken against Crawley district council (other catering).
My right hon. Friend has also decided to serve notices on the royal London borough of Kingston upon Thames in respect of financial failure in 1989–90 on highway maintenance work, and on the London borough of Bromley in respect of possible anti-competitive behaviour in awarding building maintenance work to its DLO where it was not the lowest tender.
He is also considering what further action to take in respect of financial failure in 1990–91 following the receipt of local authorities' annual reports for that year.