Orders of the Day — Housing Subsidies Bill

Part of the debate – in the House of Commons at 12:00 am on 15 December 1965.

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Photo of Mr Eric Heffer Mr Eric Heffer , Liverpool, Walton 12:00, 15 December 1965

If private enterprise building in many local authorities went out to tender in that way there might be some merit in what the hon. Member said. But there have been local authorities who, for many years, have negotiated contracts with builders and have never gone out to competition at all. I consider that to be wholly wrong, but it has been done. All that this Circular does is put the direct works departments on a par with private enterprise firms. It still does not mean that they must not go out to tender, nor that the local authority should not look at this cost and compare it with the cost of other buildings.

In the last analysis, the Ministry decides whether or not this cost is right. We have had some examples in Liverpool, including that of the Unit Construction Company. The local authority negotiated that agreement and your Ministry, when you were in power—