Lang resists further pressure for Monklands investigation

yesterday amid scenes of uproar in the Commons. He indicated he was

considering some form of inquiry but his powers are limited.

Scottish Question Time was dominated by exchanges on allegations that

a ''jobs for the boys'' scheme was operating in the council, which

covers the constituencies of both Labour leader John Smith and shadow

Scottish Secretary Tom Clarke.

Speaker Betty Boothroyd had to intervene frequently to bring MPs to

order as they exchanged claim and counter-claim across the Chamber.

Tempers still were frayed almost an hour after Scottish Questions ended,

with Mr George Galloway (Glasgow Hillhead -- Lab) accusing the Tories of

pouring ''buckets of smear'' over the two Monklands MPs.

Much of the anger on the Labour side was caused by the fact that the

matter was raised by Mr David Shaw (Dover), a Tory MP, who has taken a

leading role in drawing attention to the allegations because he and

others see it as a means of embarrassing Mr Smith.

He told Mr Lang that many Scottish people in his constituency who had

been ''shocked to learn that 22 relatives of Labour councillors are

employed by Monklands District Council''.

He went on: ''Are you further aware that, of those 22 relatives, three

are employed in the housing department (and) the director of housing's

wife is employed in the leisure centre?''

As Labour MPs jeered and shouted at Mr Shaw and the Speaker

intervened, the Dover MP concluded: ''The tenants and the people of

Coatbridge and Airdrie believe that they can obtain houses, obtain

transfers for council houses, and obtain repairs only if they have the

approval of the ruling Labour families on that council.''

Mr Lang made clear he was aware of the allegations but said his powers

to intervene in such matters were limited by statute.

He has powers under the Local Government (Scotland) Act 1973 to order

a local inquiry if he thinks an authority has failed to carry out a

statutory duty, or if he thinks there should be an investigation to

determine whether it has so failed.

He said he was considering whether any of the allegations made may

amount to a breach of the council's statutory duties but the indications

are that he is not satisfied that is the case.

The Scottish Secretary suggested that the matter might be pursued in

other ways -- through the courts, the Local Government Ombudsman, or the

Commission for Local Authority Accounts in Scotland -- but indicated

that he could not initiate such moves.

Mr Bill Walker (Tayside North -- Con) referred to a parliamentary

question he had tabled about ''the activities of Councillor Brooks, the

leader of the administration in Monklands District Council''.

He said he had received an ''unsatisfactory answer'' and went on:

''The question is about the amount of public money that has gone into

liquidation and another company that is still trading.

''It is only right that this House should be made aware of the public

money that has been used and also about the debt that is outstanding on

Pay as You Earn for four years on the company that has gone into

liquidation.

''These are matters that are genuinely of interest to this House,

regardless of the political colour of the individuals.''

Mr Lang replied: ''If the Commission for Local Authority Accounts in

Scotland concludes that the council has illegally authorised

expenditure, it can submit a special report to me with any

recommendations it may have. This may include the surcharging of those

responsible, and I am empowered to do so, but I have no evidence that

would be appropriate.''

During the exchanges, a furious Mr Galloway rounded on Mr Shaw,

stating that people would find it repugnant that ''a man who brought a

prostitute into this building'' should be casting aspersions on other

people's integrity and character.

Mr John Maxton (Glasgow Cathcart -- Lab) urged Mr Lang to dissociate

himself from Mr Shaw's ''irresponsible and unscrupulous campaign'', and

added: ''You should also ask him to repeat some of his allegations

outside the House, where he is not covered by parliamentary privilege.''

* Monklands is likely to overspend its budget by almost #1.6m and the

council is being forced to cut back on services and seek voluntary

redundancies from staff.

The measures will include:

* A recruitment freeze until April.

* Suspension of all but essential overtime, also until April.

* Cuts in leisure and recreation department spending.

The council is blaming the overspend for 1992-93 on high local

non-payment of the poll tax and the compulsory competitive tendering

system. Almost 20% of Monklands people liable for poll tax have still

not paid.

Councillors have been warned by finance executives that, if the

spending continues, Monklands will be charge capped next year.

A council spokesman said yesterday: ''Deficits have arisen and we are

tackling them. The fall in interest rates has helped by allowing the

council to obtain the money we need at a lower cost to us.''

He denied that the #16m Time Capsule pool and ice rink complex had

caused the overspend in the leisure and recreation department.

The council has agreed, after discussion with the Scottish

Labour Party HQ, to an independent adviser reviewing all aspects of

the council's employment policy. That is expected to begin in February.

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