HC Deb 05 April 1995 vol 257 cc1285-6W
Mr. Tony Lloyd

To ask the Secretary of State for the Environment (1) when his Department became aware of Lambeth council's failure to finalise accounts for each relevant financial year between 1979 and financial year ended 1993; and on what date his Department took action in each case; [18402]

(2) what information his Department received as to the failure of Lambeth council to finalise accounts for any financial year between 1979 and financial year ended 1993; and what action his Department took in each case. [18405]

Mr. Curry

Local authorities are required, under regulation 6 of the Accounts and Audit Regulations 1983, SI 1761, to make up and balance accounts for each financial year by no later than six months after the end of that financial year; and, under regulation 15, to publish a statement of accounts no later than nine months after the end of the financial year. Failure to meet these deadlines is a matter for the local authority concerned and the district auditor. My Department is not involved.

Mr. Tony Lloyd

To ask the Secretary of State for the Environment (1) when his Department first became aware of each audit report in the public interest that has been issued since 1979 with reference to Lambeth council; and what action his Department has taken in each case; [18407]

(2) what discussions his Department has had with the district audit service of the Audit Commission with respect to each audit report issued in the public interest on the subject of Lambeth council; and what action his Department has taken on each of them. [18404]

Mr. Curry

Since 1979, 10 public interest reports have been issued by the district auditor at Lambeth. The Department became aware of them as public documents. It is the responsibility of the audited body to respond to public interest reports, and to take any necessary action. The Department has no direct role in the process.

Mr. Tony Lloyd

To ask the Secretary of State for the Environment when his Department first became aware of the contents of each management letter sent to Lambeth council since 1979; and what action his Department took in each case. [18403]

Mr. Curry

The management letter is not a public document, unless an authority chooses to make it so, and any consequent action is between the audited body and its appointed auditor. The auditor is prevented by law from disclosing to the Government or anyone else information obtained in the course of his or her duties.

Mr. Tony Lloyd

To ask the Secretary of State for the Environment if he will list the dates and nature of notices served on Lambeth council with reference to the management and accounts of the council direct labour organisation; and what was the response in each case. [18406]

Mr. Curry

On 22 March 1993, five notices were served on the authority for accounting deficiencies and failure to provide accounts. Overall, these notices covered building maintenance work, highway and sewer maintenance work, refuse collection, street cleaning, ground maintenance work, building cleaning and vehicle maintenance. Subsequently, four directions were issued to the authority on 23 July 1993. Their details are as follows: Building maintenance; to re-tender all the work by 1 April 1994 and seek the consent from the Secretary of State before assigning any of the work to its direct labour organisation; a prohibition on carrying out housing maintenance work being undertaken by the private sector; a prohibition on carrying out work on non-educational public buildings; and a complete prohibition from carrying out the work from 1 July 1994 unless outstanding accounts were provided by 31 December 1993. The work was re-tendered in 63 contracts, the authority obtained consent to assign 12 contracts to its direct labour organisation in March 1994 and the accounts were supplied. Highway and sewer maintenance—a prohibition on carrying out the work from 1 April 1994 except for winter emergency work. Refuse collection and street cleaning—a complete prohibition on carrying out the work from 1 July 1994 unless outstanding accounts were provided by 31 December 1993. The accounts were provided and the direct service organisation continues to undertake the work. Ground maintenance, building cleaning and vehicle maintenance—a complete prohibition on carrying out the work from 1 July 1994 unless outstanding accounts were provided by 31 December 1993. The accounts were provided and the direct service organisation continues to undertake the work. On 28 February this year, two further notices were served on the authority for financial failure in respect of ground maintenance work and building cleaning in the year 1993–94. We have received the authority's responses and are considering whether to proceed to directions.