§ Ms WalleyTo ask the Secretary of State for Transport what assistance is available to local authority highways agencies to meet additional redundancy costs; and if he will make a statement. [25474]
§ Mr. WattsI have asked the Chief Executive of the Highways Agency to write to the hon. Member.
Letter from Lawrie Haynes to Ms Joan Walley, dated 1 May 1996:
As you know, the Minister for Railways and Roads, Mr. John Watts, has asked me to reply to you Parliamentary Question asking what assistance was available to local authority highways agencies to meet additional redundancy costs and if a statement could be made.I take this question to be referring to the work carried out by local authorities under their agency agreements with the Highways Agency for managing and maintaining the trunk road network. The current arrangements do not provide for a guaranteed level of work to be carried out by agents. Furthermore, how this work is procured and the management of staff, including redundancies, are issues which we believe are the responsibility of local authority agents. The Agency will of course meet its contractual obligations in relations to these agencies.We are optimistic that the new agency arrangements will not in themselves give rise to significant redundancies. Although tenders for the first tranche of new-style agencies have not yet been invited, potential bidders have shown considerable interest in employing existing knowledgeable local authority staff.We have already acquired the statutory powers to enable local authorities to compete for the new agencies and we are keen for them to do so. We are now seeking the necessary powers to enable local authority Direct Labour Organisations to compete for the term and works contracts in the new agencies. We believe that such competition will allow the road user to benefit from the best that the public and private sectors have to offer.