§ Chris RuaneTo ask the Chancellor of the Exchequer what measures his Department has taken to clarify the legal position on the use of Local Labour in Construction; and if he will make a statement. [164856]
§ Dawn PrimaroloThe legal position on the use of local labour clauses in public contracts is covered in the European Commission's 2001 Interpretative Communication on the Community law applicable to public procurement and the possibilities for integrating social considerations into public procurement (COM(2001)566 final). That document, which takes account of relevant European Court of Justice cases, makes it clear that social and employment clauses must be compatible with Community law—particular, such clauses must not discriminate directly or indirectly against tenderers from other Member States. It is unlikely that a clause based on locality" would meet this requirement. It is for each Department to consider such issues on a cause by case basis, against the background of the Government procurement policy, based on value for money, and the EU requirements outlined above.
§ Chris RuaneTo ask the Chancellor of the Exchequer what plans he has to update the 1996 Treasury advice to public bodies on using Local Labour in Construction to allow public bodies greater flexibility in using local labour. [164886]
§ Dawn PrimaroloOfficials are unaware of any 1996 Treasury advice.
The legal position on the use of local labour clauses in public contracts is covered in the European Commission's 2001 Interpretative Communication on the Community law applicable to public procurement and the possibilities for integrating social considerations into public procurement (COM(2001)566 final). Local Labour clauses will he covered in guidance to be prepared by the interdepartmental Sustainable Procurement Group, in light of its report, published in January 2003.