§ Mr. Oakesasked the Secretary of State for the Environment, (1) what will be the effect of European Economic Community Directive 71/305 which lays down precise rules on the advertising of, and acceptance of, tenders for public works contracts on the freedom of British local authorities;
(2) what discussions he has had with the local authority associations on the effect of the United Kingdom's proposed entry into the Common Market, and in particular concerning the effect of the European Economic Community Directives 71/304 and 71/305;
(3) what will be the effect of the European Economic Community Directive 71/304 which gives European construction firms the right to participate in all British public works contracts on the powers of local authorities to select a local contractor in order to provide employment for people in their area;
(4) what will be the effect of European Economic Community Directive 71/304 on the continued operation of the direct works departments of local authorities.
§ Mr. Peter WalkerThese directives are designed to remove restrictions on competition. They require the abolition of restrictions on the access of firms to public works contracts in other member States and lay down procedures under which such contracts should be invited and let. In general, the detailed procedures in Directive 71/305 relate only to contracts of £400,000 or more.
The directives will apply to both Government Departments and local authorities. We have already had preliminary discussions with the local authority associations about the implications of E.E.C. membership for local authorities and standing arrangements for continuing discussions have been established. A joint working party is being set up to examine the precise way in which these particular 56W directives will apply to contracts placed by local authorities and to work carried out by their direct labour organisations.