HC Deb 10 July 1991 vol 194 cc939-40
8. Mr. Cryer

To ask the Secretary of State for the Environment what plans he has for the extension of compulsory competitive tendering.

Mr. Key

The introduction of competition into local authority services has produced demonstrable gains in efficiency and value for money, and I am actively considering ways of extending the range of services subject to compulsory competitive tendering.

Mr. Cryer

Instead of wasting resources on compulsory competitive tendering, which denies those citizens who are affected the right to democratic accountability through their local councillors, why does the Department of the Environment not spend resources on protecting and helping local authorities by checking the list of banking institutions that it sends to every local authority and finding out about banks such as the Bank of Credit and Commerce International, which appears on the current list issued by the Department of the Environment? The Department encouraged local authorities to invest in shabby concerns without knowing anything about them at all, which has resulted in the loss of millions of pounds invested by local authorities on the advice of the Minister's Department. Why does he not do something about that instead of helping seedy contractors to reduce the standard of democracy?

Mr. Key

The compulsory competitive tendering process has produced enormous gains for consumers. My right hon. Friend the Prime Minister's citizens charter will do even more. My Department issues no list of such banks. As the hon. Gentleman should know, a list is issued by the Bank of England. I have carefully looked at the allegations that the hon. Gentleman made in points of order yesterday and there is no truth in them.

Mrs. Roe

Is it not ironic that the Government's policy on compulsory competitive tendering for council services, which was fought so hard by the Labour party, should now be the only policy that is saving the ruling Labour group on Liverpool council from the terrible mess into which it has got both itself and the city?

Mr. Key

We are delighted at the Labour party's late conversion to the benefits of compulsory competitive tendering.

Mr. O'Brien

When do the Government intend to introduce quality into contracted-out services? So far, they have targeted only the number, size and value of contracts —quality of services has not been targeted. Before there is any extension of compulsory competitive tendering, will the Government ask Birmingham univeristy to study the quality of services provided as a result of compulsory competitive tendering? We need good-quality services for all the people who depend on local governent services.

Mr. Key

Quality is one of local authorities' considerations in setting the criteria in awarding contracts. It is entirely up to them to set the standards of quality, and I repeat that my right hon. Friend's citizens charter will deal with that issue afresh.

Mr. Squire

Is not it strange that a decision that in the private sector is a matter of fact—that it is more efficient and beneficial to employ people in house rather than to bring in outside contractors—has for the Opposition become an ideological obsession? Until they are seen to be acting in the interests of the users rather than of those working in local government, do not they forfeit any right to be considered an alternative Government?

Mr. Key

My hon. Friend is right. The Opposition are split down the middle on the issue—sometimes they find it convenient to support the idea, but sometimes they find it convenient to rail against it. They have no solution of their own, and my hon. Friend is absolutely right.