THE CONVENTION of Scottish Local Authorities yesterday reminded the

Government of councils' continuing problems of poll tax non-payment.

Cosla's Labour president, Councillor Jean McFadden, in a statement on

the eve of the Queen's Speech introducing the new council tax, warned

that local government could not sustain services for the remaining 17

months of the poll tax if non-payment continued at its present level.

She repeated Cosla's demand for immediate 100% rebates for those on

Income Support, and exemption for students who pay 20%. Councillor

McFadden also called for compensation for local authorities for loss of

income.

Poll tax debt stands at #350m for the first two years of the system,

and for the financial year which ends in March, 70% of poll tax income

remains unpaid.

Councillor McFadden said Cosla welcomed a property-based tax, but like

many other organisations, did not accept the valuation banding designed

to subsidise the better off.

She also claimed the Government's plan to incorporate a complicated

system of discounts requiring investigation into each and every

household was retaining the worst factors of the poll tax.

''Let no one believe for a moment that this is a simple tax. Its

administrative complexity, with personal discounts and rebates, will

rival that of the poll tax,'' Councillor McFadden warned.

A second local government Bill containing proposals to extend

compulsory competitive tendering to white collar council services is

also expected to be announced later today.

Councillor McFadden said the Government should direct its attention to

the existing CCT operation in Scotland, which she claimed had not

brought the savings anticipated by ministers, and had placed unnecessary

administrative burdens on the services involved.

The proposed extension of enforced tendering, she said, was designed

to further fragment authorities by privatising services such as finance

and computing. In certain cases, councils might wish to put these

services out to tender, but it was wrong to force every authority to do

so.

She also complained that the Scottish Office had refused to let Cosla

see the consultants' report recommending the increase in CCT. This lack

of co-operation, said Councillor McFadden, showed how the Government

wished to impose compulsory tendering at whatever cost on local

government.

The legislation is also expected to impose tough new rules governing

the way tenders are drawn up and considered. These could include

scrapping current rules on redundancy costs as part of what Ministers

claim is a drive to ensure a more level playing field for private firms

competing against in-house council tenders.

This second Bill is also expected to include provisions for setting up

an independent commission which will examine area by area the future

shape of local government in England. Despite pressure from Cosla,

Scottish Secretary Ian Lang has resisted calls to set up a similar body

in Scotland.