§ Mr. Michael Lathamasked the Secretary of State for the Environment what steps if any, he intends to take to protect civil servants in his Department from any 18W On accession the EEC regulations became part of United Kingdom law, with certain deferment of operative dates. I have not agreed to any subsequent changes in United Kingdom law.
Both codes provide for minimum daily and weekly rest periods, though the EEC code does not at present include specific limits on periods of work other than driving. However, I am supporting a proposal, currently before the EEC Council of Ministers, which would introduce such limits into EEC law.
possible legal actions for libel in the event of their notifying local authorities that a named contractor is in breach of the pay limits, and should not be invited to tender in accordance with paragraph 15 of Circular 123/75, but where it subsequently transpires that an error has been made and no such breach has in fact occurred.
§ Mr. ArmstrongNo special steps are necessary. It is the practice to indemnify civil servants against claims brought against them arising out of acts committed bona fide and within the scope of their employment.
§ Mr. Michael Lathamasked the Secretary of State for the Environment whether it is intended that the list of named contractors to be denied the right to tender, 19W described in paragraph 15 of Circular 123/75, should be contained in a normal departmental circular signed by an official of his Department, published and generally available to the public; and whether he will accept full personal responsibility, including any possible legal responsibility, for any errors which might be contained in such a document.
§ Mr. ArmstrongIt is contemplated that the normal departmental circular procedure would be adopted should the need ever arise. I am advised that my right hon. Friend's personal responsibility raises legal questions and would depend on the circumstances of the case.
§ Mr. Michael Lathamasked the Secretary of State for the Environment (1) whether the requirements in paragraph 15 of Circular 123/75 about ceasing to invite tenders from contractors found to have breached the pay limits is in conformity with the requirements for the general advertisement of construction contracts under EEC regulations; and upon what evidence he bases his judgment on this matter;
(2) what statutory powers local authorities have to discriminate in the awarding of contracts against construction firms not prepared to sign declarations similar to that set out in Annex 2 of circular 123/75; and how this is reconciled with the provisions of the EEC regarding general advertisements of contracts over a specified value.
§ Mr. ArmstrongLocal authorities are required by law to adopt standing orders which, among other things, must provide for competition in the award of contracts. However, they have complete discretion to refuse to invite any firm provided that in doing so they do not infringe EEC directives. Directive 71–304 requires the abolition of restrictions which might prevent contractors from other member States from participating in public works contracts on equal terms with national contractors. Directive 71/305 requires the adoption of certain common rules and advertisement in the Official Journal for contracts above £415,000. The arrangements in DOE Circular 123/75 do not advocate discrimination on grounds of nationality and are matters of public policy necessary to implement the Government's counter-20W inflation policy. I see no conflict with the directives.
§ Mr. Michael Lathamasked the Secretary of State for the Environment under what statutory powers local authorities will be permitted to withhold approval of the sub-letting to non-nominated subcontractors of construction work in the circumstances envisaged in paragraph 9 of Circular 123/75; and how he envisages that the client will know about the absence of any undertakings in advance of the letting of the main contract, in view of the fact that it is the contractor and not the architect who will choose the sub-contractor.
§ Mr. ArmstrongStatutory powers are not involved: it is a condition of the standard form of building contract that the architect's written consent to sub-let any part of the works be obtained. Such consent would be subject to the main contractor obtaining a declaration from the non nominated sub-contractor.
§ Mr. Michael Lathamasked the Secretary of State for the Environment under what statutory powers he envisages that local authorities, as advised by him in paragraphs 11 and 12 of Circular 123/75, should formally ask contractors to vary the terms of existing construction contracts, and, if the contractors refuse to do so, should report them to the Price Commission; and what steps he proposes to take to protect local authorities from possible surcharge in respect of clerical and administrative expenses incurred in any such activity, should it be found to be ultra vires.
§ Mr. ArmstrongNo statutory powers are required. This is an entirely voluntary arrangement between client and contractor which was introduced after discussion with representatives of the sponsoring bodies of the main standard construction contract forms. There is no intention that action should be taken against a contractor solely on the grounds of his refusing to incorporate the new clause in an existing contract. A report would be made to the Price Commission only if a contractor continued to insist on reimbursement of pay increases which were clearly in excess of the pay limits.
21W
§ Mr. Michael Lathamasked the Secretary of State for the Environment why, in view of the fact that he has advised local authorities in paragraph 6(ii) of circular 123/75 to insert a newly agreed JCT clause in their invitations to tender under the RIBA Standard Form of Building Contract, he did not also take the opportunity to advise local authorities to desist from the practice of making unilateral alterations in the RIBA form, especially in those sections dealing with permitted increases in costs, or variations.
§ Mr. ArmstrongLocal authorities will again be reminded of the advantages of using standard forms of contract in a circular shortly to be issued on the use of the NEDO formula system of price variation for building contracts.
§ Mr. Michael Lathamasked the Secretary of State for the Environment what action was taken by his Department to explain to public sector clients and contractors the Remuneration, Charges and Grants Act 1975 so far as it affects construction contracts between the coming into force of the Act and the issue of circular 123/75 on 16th December 1975; and why no earlier guidance was given in the form of a circular.
§ Mr. ArmstrongThe implementation of the policy set out in the White Paper "The Attack on Inflation" (Cmnd. 6151) in respect of public sector construction contracts called for extensive consultation with the main bodies concerned, resulting in the publication of emergency amendments for use in association with the standard form of building contract. General guidance on the effects of the Price Code amendment following the Remuneration, Charges and Grants Act 1975 was given by the Price Commission in Price Commission Data Sheet No. 15 on 13th August 1975.