§ 26. Mr. Michael Lathamasked the Chancellor of the Exchequer whether, in view of the fact that Department of the Environment Circular 123/75 states that the Treasury will be responsible, in consultation with other Departments, for deciding if construction firms should be blacklisted from future public sector contracts for alleged breach of the pay limits, he will now give details of how he proposes to hear any such contractors in their own defence, in accordance with natural justice, under stage 2 of the incomes policy.
§ Mr. Joel BarnettUnder the procedures which have operated during the current pay round and which are expected to continue into the next round a contractor would be barred only after he had been finally found by the Department of Employment to have breached the pay limit and until such time as he had modified his pay settlement to accord with the limit. As I explained in answer to a Question by the hon. Member on 8th June, whenever a contractor has been found to have breached the pay limit he has been given every opportunity by the Department of Employment for his views to be heard. He is also free to make representations to the Department awarding the relevant contract.