HC Deb 25 January 1989 vol 145 cc1019-21
9. Mr. Holt

To ask the Secretary of State for the Environment what information he has on the implementation of the Government's privatisation policy by Middlesbrough council.

Mrs. Virginia Bottomley

My hon. Friend has written to us about the subject. We are investigating the question and I shall write to him as soon as possible.

Mr. Holt

I am grateful for that answer, but I hope for a longer answer when my hon Friend writes to me. Will she bear in mind when she replies the generous attitude of the Government towards Middlesbrough council in the grants that they hand out, particularly compared with the grants to neighbouring Langbaurgh, and will she look at the tendering processes in the two authorities? Middlesbrough refuses to carry out Government policy and is entering into long-term contracts, thereby making it almost impossible, as identified by the Northern Federation of Master Builders, to tender against the direct labour organisation. Langbaurgh has followed the spirit of Government policy and has made mammoth savings as a result. Is it not time that the Government rewarded such Conservative-controlled authorities which implement Government policy and did not reward authorities such as Middlesbrough?

Mrs. Bottomley

My hon. Friend is right in saying that we have treated Middlesbrough generously, with an increase of more than 8 per cent. in block grant this year. The Local Government Act 1988 provides the powers for the Secretary of State to take when local authorities have been involved in anti-competitive practices. Contracting out can result in major savings for ratepayers and, in future, charge payers. It is up to local authorities to take full advantage of that legislation. In cases where local authorities have abused their position and have behaved in an anti-competitive fashion, my right hon. Friend the Secretary of State will not hesitate to take the powers at his disposal.

Ms. Mowlam

Does the Minister agree that what is important for the people of Middlesbrough is that the roads are clean, the bins are emptied and the gulleys are cleared? By integrating its services, Middlesbrough city council offers an efficient service and it is working within the Local Government Act 1988. Will the Minister now clarify that that is the case, rather than implying through slurs that Middlesbrough city council is working outside that Act?

Mrs. Bottomley

I hope that the hon. Lady will advise Middlesbrough council to read the recent Audit Commission report, which made it clear that savings of almost 20 per cent. can be achieved by competitive tendering. What is important is that a high standard of services is achieved efficiently and effectively. Once I have looked into the situation in Middlesbrough, I shall ensure that the hon. Lady has a copy of the reply that I shall give to my hon. Friend the Member for Langbaurgh (Mr. Holt).

Mr. John Marshall

Does my hon. Friend agree that the savings from competitive tendering give local authorities an opportunity to provide a higher quality service without any extra cost to the ratepayer?

Mrs. Bottomley

I agree. It will not only be at no greater cost to the ratepayer but, as the Audit Commission report made clear only last week, it will be at considerable savings for the ratepayer.

Dr. Cunningham

Is the Minister not aware that Middlesbrough council has acted properly, within the law and with the support of the minority Conservative group to produce a tender specification in respect of street cleaning and related functions? As it has acted perfectly properly, why should it be criticised other than for reasons of political spite? Having checked the matter today, which the Minister clearly has not, with the leader of the council, councillor Carr, I am advised that he has received no complaint or opposition from Tory councillors about the procedures followed by the council.

Mrs. Bottomley

What matters is that the council carries out its contracting-out processes fairly, and not in an anti-competitive fashion. That will result in not only a high standard of services, but savings to the ratepayer. Once we have completed our inquiries, which were started by my hon. Friend the Member for Langbaurgh, we shall be able to comment more fully. At this moment it would be quite improper for me to make any further comments.