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Public Service Contracts

Volume 960: debated on Thursday 14 December 1978

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asked the Chancellor of the Exchequer whether he has yet received a reply from the EEC Commission regarding the implementation of EEC directive 77/62/EEC, concerning public service contracts, in other EEC member States; if so, what the reply stated; and if he will give an undertaking that the United Kingdom will not observe the terms of this directive until all other member States start to do so.

The Government have received a reply from the EEC Commission to the representations made to it about the malfunctioning of this directive. The Commission makes it clear that it fully shares the Government's concern about its unbalanced application, and has told us that it has set in motion the procedure for applying article 169 against all member States who have not implemented it. The Italian Government have now informed the Commission that legislation applying the directive has been adopted, and the Commission understands that certain member States have issued administrative instructions asking for compliance in advance of legislation. The Commission hopes that the action taken by it under article 169 will accelerate matters further, and lead to full and early implementation by all. We are urging the Commission to maintain pressure on the laggards, and are keeping a close watch on events.