HC Deb 21 November 1995 vol 267 cc444-5
2. Sir Michael Grylls

To ask the Secretary of State for the Environment what savings have been delivered by compulsory competitive tendering. [731]

The Parliamentary Under-Secretary of State for the Environment (Sir Paul Beresford)

Savings totalling £400 million have been made to date. This allows the local authorities concerned to invest in services or to reduce bills.

Sir Michael Grylls

That is a worthwhile saving. Is it not significant that the Labour party has consistently opposed competitive tendering policies, and, I believe, still does? On reflection, I do not find that altogether surprising, as four Labour Members are sponsored by trade unions and are therefore putting the unions before the good of local people.

Sir Paul Beresford

I entirely agree. It is intriguing that, when it comes to propaganda, Opposition Front Benchers promote competition, but when it comes to the reality of Labour local authorities, they reject it at every opportunity.

Mr. Bennett

How much has that saving cost central Government? Will the Minister confirm that, as a result of compulsory competitive tendering, many people take home lower wages, thus qualifying for housing benefit and family credit? We want to hear the full figures, not just the saving to local government.

Sir Paul Beresford

The hon. Gentleman should reflect on the local economy. The almost parasitic drawing of some direct labour organisations on the local economy has been offset; we have better business, better management and lower costs, and the general productive business in the community has therefore been able to improve standards.

Mr. John Marshall

Does my hon. Friend agree that those who seek to get rid of compulsory competitive tendering will force local authority taxpayers to pay more, and bring about poorer services? They are concerned only with jobs for the boys in the unions that sponsor them.

Sir Paul Beresford

I entirely agree with my hon. Friend, who has clearly lived or suffered under a local authority run by either Labour or the Liberal Democrats. The reaction of local authorities to the opportunity to serve their local communities rather than the unions is extraordinary.