The 1600
DLO workers were to be held responsible for the mismanagement of highly-paid officials.
"The bottom line is that hundreds of jobs will be lost from the
DLO."
A
DLO spokesman said that DSMS had been scrapped because developments in defence logistics meant it was no longer seen as the right solution to the military's inventory needs.
When the
DLO scandal broke, it was revealed one [pound]10,600-a-year plumber took home [pound]54,100.
But council leader David O'Neill insisted: "The steps we are taking now will strengthen the overall trading position of the
DLO as a whole, making it more viable and better placed to compete in today's marketplace.
Mr Lavery was appointed director of the newly-formed Homes and Technical Department, which replaces the old
DLO, last week.
Vice-convener for local government Kenneth Gibson said: "While SNP-controlled Perth and Kinross were able to solve the relatively small overall net deficit in their
DLO by effective monitoring and openness, the same has not been true of all councils.
'This was our only option to ensure that tenants get the improved and efficient service that they deserve, bearing in mind the deficit of repairs that would be carried out which was built up by the
DLO,' he said.
Norman Morrow, of Buildforth Contractors, has completed the task he was paid pounds 56,000 for last year, and council chiefs now want him to set up new public and private sector partnerships in the
DLO insisted on by the Government.
Yesterday, however, citing family pressures and worries over the jobs of workers in the
DLO, he said he would formally step down as leader of the Labour-controlled authority at the next meeting of the full council on September 16.
Under the plan, managers would quit their council jobs and run the
DLO as a private firm.