asked the Secretary of State for the Environment if he will issue a circular to local authorities advising them that only firms known to maintain recognised standards of building construction should be invited to tender for local authority building work.

I have recently issued the first instalment of a Code of Procedure for Local Authority Housebuilding which consolidates guidance on the selection of contractors. The code recommends selective tendering and calls for a thorough investigation into the technical ability and financial standing of firms before they are invited to tender.