HC Deb 01 December 1983 vol 49 cc581-2W
Mr. Michael Forsyth

asked the Secretary of State for Scotland what proposals he will be making to increase the amount of local authority and development body construction and maintenance work that is subject to competitive tenders following the responses to the consultation paper which his Department issued on 17 August.

Mr. Younger

We have decided to introduce from 1 April 1984 the competition requirements outlined in the consultation paper. The effect of the changes will be as follows:

  1. a. For general highway works, a reduction from £100,000 to £50,000 in the amount above which a local authority must seek competitive tenders before awarding the work to its direct labour organisation;
  2. b. For general highway works costing £50,000 or less, the introduction of a new requirement that a local authority 582 must seek tenders for work in excess of 70 per cent. of the combined total value of such work in the previous financial year, whether undertaken by a contractor or the direct labour organisation;
  3. c. For works of new construction—other than highways or water and sewerage works—costing £50,000 or less, a reduction to 40 per cent. of the combined total value of such work in the previous financial year—whether undertaken by a contractor or the direct labour organisation—which can be awarded to the direct labour organisation without seeking competitive tenders;
  4. d. For works of maintenance—other than highways or water and sewerage works—costing £10,000 or less, the introduction of a new requirement that a local authority or a development body must seek competitive tenders for work in excess of £300,000 or 40 per cent. of the combined total value of such work in the previous financial year — whether undertaken by a contractor or the direct labour organisation — whichever is the higher.

The responses to the consultation document revealed that the new requirements would present operational difficulties for a number of local authorities and development bodies. For this reason, I propose, for the first year only, transitional arrangements whereby a local authority or a development body may award to its direct labour organisation without competition,

  1. a. for general highways work costing £50,000 or less, 90 per cent. of the value of such work undertaken by the direct labour organisation in the year to 31 March 1984 and,
  2. b. for maintenance work costing £10,000 or less, 80 per cent. of the value of such work undertaken by the direct labour organisation in the year to 31 March 1984,
where this would result in a direct labour organisation being able to undertake a greater amount of work without competition than under the proposals in the consultation paper.

I shall be laying the necessary regulations to give effect to these changes.