§ Mr. Barry FieldTo ask the Secretary of State for the Environment what action he proposes to take against those local authorities whose direct labour organisations made significant financial losses in 1990–91.
§ Mr. Robin SquireStatutory notices under the Local Government, Planning and Land Act 1980 and the Local Government Act 1988 were served on 35 local authorities between July and September of last year in respect of financial failure in 1990–91. I announced on 2 December 1992,Official Report, column 209 and 4 March, Official Report, column 265 decisions in respect of 26 authorities. The Secretary of State has now considered the responses of a further nine authorities on whom notices were served on 11 September 1992.
He has decided to take no further action in respect of financial failure in 1990–91 by Boston borough council —highways and sewerage: Carlisle city council—new construction in excess of £50,000 and highways and sewerage; Chorley borough council—highways and sewerage; Gosport borough council—building maintenance; London borough of Newham—new construction of less than £50,000 and building maintenance; Newcastle 630W upon Tyne city council—building maintenance; Southend on Sea borough council—highways and sewerage; and London borough of Southwark—building maintenance.
In all these cases the authority:
- (a) appears to have successfully responded to the financial losses incurred in 1990–91, and has either achieved a surplus in 1991–92, or expects to achieve the appropriate financial objective in 1992–93, or,
- (b) has re-tendered or intends to re-tender very shortly the work in question.