§ Mr. ColvinTo ask the Secretary of State for the Environment (1) what assessment he has made of the cost of tendering for public sector contract work under the Local Government Act 1988, in terms of time and resources; and if he will make a statement;
212W(2) what is the proportion of local authority contracts won by (a) the private sector and (b) direct labour organisations in (i) catering, (ii) refuse collection, (iii) vehicle maintenance, (iv) street cleaning, (v) grounds maintenance, and (vi) building cleaning.
§ Mr. Heathcoat-AmoryNo figures are available at present. An in-depth research project is currently being carried out on behalf of the Department to assess the impact of competition policy and this will examine costs incurred as well as savings made. We expect the first phase of the project to be completed next May. Local authorities have been asked to complete a questionnaire which will provide information on the number of contracts awarded to DSOs and private contractors. I hope that the results will be available early next year.
§ Mr. ColvinTo ask the Secretary of State for the Environment what guidance he gives to local authorities on the practice of using the schedule of rates in seeking competitive tenders from private contractors.
§ Mr. Heathcoat-AmoryAdvice issued by my Department in its circulars 10/81, 6/82 and 19/83 has encouraged the use of schedules of rates by local authorities. The Department has not issued guidance about the use of schedules but has, in those circulars, referred local authorities to guidance and practical advice produced by bodies such as the Association of Metropolitan Authorities, the National Federation of Building Trades Employers (now the Building Employers Confederation), the Society of Chief Quantity Surveyors in Local Government, the Institution of Municipal Engineers and the Chartered Institute of Public Finance and Accountancy.
§ Mr ColvinTo ask the Secretary of State for the Environment what information he has on the Audit Commission's estimate of the savings to be made through compulsory competitive tendering.
§ Mr Heathcoat-AmoryThe Audit Commission's occasional paper "Preparing for Compulsory Competition" published in January indicated that local authorities can obtain savings of 20 per cent. or more in contract price irrespective of whether work has been won by the private sector or by authorities' own work forces.
§ Mr. ColvinTo ask the Secretary of State for the Environment what steps he is taking to encourage local authorities to provide sufficient information to enable private firms to tender competitively for contract work.
§ Mr. Heathcoat-AmoryUnder the competition pro visions of the Local Government Act 1988, authorities are required to prepare and make available a detailed specification of the work for which tenders are being, invited. Any failure to include adequate information might be regarded as anti-competitive and lead to the exercise of the Secretary of State's sanction powers.