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Volume 130: debated on Thursday 31 March 1988

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To ask the Secretary of State for the Environment whether he has come to a decision on the future of Hackney's building direct labour organisation following his request to the borough to submit a special report.

My right hon. Friend has considered Hackney's special report and subsequent correspondence and has today informed the borough, in accordance with his powers under S17(5) of the Local Government, Planning and Land Act 1980, that with immediate effect its direct labour organisation shall not have power to undertake major new building work except as necessary to complete work already awarded to it, and that its power to carry out this work will cease completely a year from now.The borough claimed to have made a surplus on its major new works account in 1985–86 following losses of £3·2 million in 1983–84 and £1·75 million in 1984–85. My right hon. Friend is now satisfied, however, that the claimed surplus is spurious.