§ Mr. Skeetasked the Secretary of State for the Environment why it has been decided that contracts under £100,000 will not be open to competitive tender by local authorities under projected direct labour regulations under the Local Government, Planning and Land Act 1980; and how this figure was reached.
§ Mr. Geoffrey FinsbergThe tendering limit of £100,000 for highways work, which was announced to the House last July, strikes a reasonable balance between the need for increased competition and the need to avoid swelling the bureaucracy. It will impose on direct labour organisations extensive and increased competition. It will not prevent authorities from seeking competition below these limits if they so choose, and I hope that they will.