§ Mr. Allan StewartTo ask the Secretary of State for Scotland if he has completed his consultations about the competition requirements relating to direct labour organisations; and if he will make a statement.
§ Lord James Douglas-HamiltonThe overall response rate to the consultation paper issued in October 1988 was low with only half of local authorities submitting comment. My right hon. and learned Friend was grateful to all those who did respond and has carefully considered the comments received. He has now decided that all building and maintenance work, other than highways and water and sewage work, should be subject to competition and that authorities should be prohibited from renewing maintenance contracts without first going out to tender. Emergency work will continue to be exempt but further consideration is being given to the scope for restricting the kinds of emergency work which can be carried out by direct labour organisations without competition.
In the light of the responses received, my right hon. and learned Friend has also decided to defer the implementation date by six months to 1 April 1990 and to increase the exemption for direct labour organisations proposed in the consultation paper from five to 15 employees.