§ Mr. Durantasked the Secretary of State for the Environment whether he has proposals for further increasing the amount of competition for council direct labour organisations.
§ Mr. StanleyPublic accountability and value for money considerations both make it desirable that, wherever practicable, public sector construction and maintenance work should be submitted to competitive tender. I have issued a consultation paper today which proposes further increases in maintenance and new building work that will have to be put out to competitive tender as from 1 October 1983 rather than being undertaken by direct labour organisations without competition.
All maintenance work above £10,000 per job and 30 per cent. of the work below the £10,000 threshold has to be put out to competitive tender now. It is proposed to increase the 30 per cent. figure to 60 per cent. All new building work above £50,000 per job and 33⅓ per cent. of 99W the work below the £50,000 threshold has to be put out to competitive tender now. It is proposed to increase the 33⅛ per cent. figure to 60 per cent.
On highways, Ministers favour the reduction of tendering thresholds and an increase in competition for highway works. They would wish to see a reduction in dependence on DLOs by highway authorities so far as this is practicable. They would welcome a greater involvement of contractors for highway work on a regular basis—including winter maintenance work. They wish, however, to be satisfied that such developments can be fostered in an orderly and cost-effective way. They intend, therefore, to defer making any final decision on the introduction of a partial tendering requirement for work below the £50,000 threshold until they have sufficient evidence of the effect of the new £50,000 limit on highway costs and, in particular, on winter maintenance operations.
They propose, however, to consult again and review the position after such evidence will be available in the spring. Subject to their assessment of this, they will consider the possibility of requiring up to 30 per cent. of this work to be submitted to tender from 1 October 1983.