asked the Secretary of State for the Environment whether he will take any action against loss-making direct labour organisations including the one operated by the London borough of Camden.

As a result of Camden's losses of over £300,000 over the financial years 1984–85 and 1985–86, my right hon. Friend has asked the council to submit a special report on its DLO's major new construction activities. My right hon. Friend has also asked Hull city council to submit a special report, following its DLO's losses of over £1·6 million on major new construction in 1984–85 and 1985–86.Both these requests follow the decision, to which I referred in my answer to my hon. Friend the Member for Streatham (Mr. Shelton) on 18 February 1987, to request special reports from authorities after two consecutive failures to achieve the prescribed rate of return on capital.