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Mrs. Gorman
To ask the Secretary of State for the Environment what provision there is for local authorities to privatise their direct labour organisations.
Mr. Key
There is no reason why a local authority which wishes to privatise its direct labour organisation should not do so. Direct labour organisations are in any case subject to compulsory competitive tendering under the Local Government Planning and Land Act 1980 and the Local Government Act 1988. My right hon. Friend is currently considering the scope for extending the list of services subject to competition.