§ Mr. Gordon Brownasked the Secretary of State for Defence what advice his Department is now giving to contractors on how they should submit tenders for contracts previously covered by the fair wages resolution; and whether it is part of his advice to encourage these contractors to cut their wage rates or to offer less satisfactory working conditions.
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§ Mr. LeeApart from notifying contractors that the standard contract conditions relating to the fair wages resolution ceased to apply from 21 September last year, my Department has not given any advice to contractors or potential contractors on matters formerly covered by the resolution. Contracts for cleaning services contained a separate provision stipulating minimum pay and holiday arrangements. In keeping with the decision of the House to rescind the fair wages resolution, action was taken to remove that condition and contractors were invited to submit their proposals for amendment of the contracts concerned. In no cases have MOD contractors been encouraged to cut their wage rates or offer less than satisfactory working conditions. Provided that he observes legal requirements, the wages and conditions that a contractor needs to offer in order to remain competitive are a matter for his commercial judgment.