§ Mr. Tebbitasked the Secretary of State for the Environment if it is his intention to make arrangements to indemnify councillors against surcharge in respect of excessive expenditure incurred by the rejection of most favourable tenders on 53W the grounds that they are made by companies in breach of the Government's incomes policy.
§ Mr. ShoreUnder phases 1 and 2 of the pay policy my Department asked local authorities to adopt the Government's own contractual procedures in their purchasing to guard against breaches of the policy. [DOE Circulars 123/75 and 103/76.] No guidance has been issued in the current phase of pay policy. However the Government have no powers to instruct local authorities as to whom they should employ as contractors. Nor would they ask local authorities to take action contrary to law. Indemnification of councillors would not therefore arise.