HC Deb 16 February 1994 vol 237 cc927-8
1. Mr. Clifton-Brown

To ask the Secretary of State for the Environment what improvement in quality of service has been seen in councils since the introduction of compulsory competitive tendering.

The Parliamentary Under-Secretary of State for the Environment (Mr. Tony Baldry)

Independent research by the university of Birmingham has shown that authorities' CCT contracts have ensured better monitoring and better delivery of services. Costs are on average 7 per cent. less than before, and up to 20 per cent. less for some services.

Mr. Clifton-Brown

I warmly welcome my hon. Friend's reply. Is he aware that compulsory competitive tendering breaks up the cosy relationship between some local authorities and trade unions, particularly those local authorities that run direct services organisations? Is not that really why Labour Members are fearful of fair competition?

Mr. Baldry

If one wants evidence of that cosy relationship, one need look no further that this week's Municipal Journal. On one page, we discover that the GMB persuaded the Labour-controlled Lancashire county council to rethink its decision to award to outside contractors 19 contracts, which had been won fairly on competitive tender. If we want to know why that has happened, we have only to look on the opposite page, where we discover that the same union will be giving some £250,000 to help the Labour party to fight elections. That is the clearest possible example of a trade union buying influence. The Labour party is clearly in the pocket of the very union that does not want competitive tendering.

Mr. Henderson

I declare an interest, as a member of the GMB. Are not many thousands of GMB and other trade union members employed by local authorities on very low wages? Have not the cost savings made through CCT often been at the expense of the wages of those low-paid people and, on other occasions, resulted in the quality of services suffering?

Does the Minister recognise that the transfer of jobs from the public sector, where the Department of the Environment has responsibility, to contractors raises pensions questions? Will he confirm that contractors themselves have asked for clarification on that? Does he accept that, when jobs are transferred from local authorities to contractors, any system that is fair should include the fair transfer of pension arrangements and that local authorities and contractors should be obliged to honour those arrangements?

Mr. Baldry

I notice that the hon. Gentleman acknowledges being sponsored by the GMB, but does not have the good grace to acknowledge that the GMB is seeking to persuade the Labour party, with a substantial contribution of funds, to go back on competitive tendering.

As to the hon. Gentleman's point about the effectiveness of competitive tendering, all the research shows that performance has been better monitored, productivity has been improved, staff are better managed and motivated and morale is higher as a consequence of CCT. That independent research has been carried out by the institute of local government management in the university of Birmingham, and Opposition Members do not like it, just as they do not like the advice on pensions given by Dr. Elias and others. We will, of course, look carefully at those points.

Mr. Duncan Smith

Does my hon. Friend agree that, despite what the Opposition have said, my local council, Waltham Forest, has consistently failed to make the extra effort over CCT? The council's direct services organisation was hugely in debt and failed to collect the outstanding bills, and that led to a reduced service for the public. Was not that directly as a result of a political decision by the council to drag its heels over the matter?

Mr. Baldry

All the evidence shows that competitive tendering brings substantial savings to local people and improves the quality of service. It is a sad reflection that far too many local authorities still resist introducing competitive tendering, often at the behest of the local trade unions. Local authorities must decide whose interests they serve—those of local people or those of local trade unionists.