HL Deb 30 November 1992 vol 540 cc81-2WA
Lord Wade of Chorlton

asked Her Majesty's Government:

Whether it is the case that, under the Local Government Act 1988 and the EC Directive 89/440/EEC, private sector companies submitting an unsuccessful tender are entitled to know the value of the other bids submitted, and details of the evaluation process, when the direct service organisation is awarded the contract but is not the lowest tender.

The Parliamentary Under-Secretary of State, Department of the Environment (Lord Strathclyde)

Yes. Where a direct service organisation is awarded work subject to compulsory competitive tendering, Sections 12 and 20 of the Local Government Act 1988 together require the local authority (or other public authority subject to these provisions) on request to provide, to any person, a written statement showing the financial provisions shown in each offer, and, to an unsuccessful contractor, a written statement of the reasons not to award the contract to him. The information provisions of Directive 89/440/EEC do not, strictly, apply in these circumstances.

Lord Wade of Chorlton

asked Her Majesty's Government:

What powers they have to ensure that compulsory competitive tendering contracts are awarded in the best interests of the taxpayer.

Lord Strathclyde

Under the provisons of Part III of the Local Government Planning and Land Act 1980 and Part I of the Local Government Act 1988, local authorities and some other public bodies must subject certain sorts of work to fair competition before they can undertake the work using their own employees. Section 19 of the 1980 Act and Section 14 of the 1988 Act allow the Secretary of State to restrict the power of such an authority to carry out such work in certain circumstances, in particular where it appears to him that the authority has acted in a manner which has, or is likely to have, the effect of restricting, distorting or preventing competition, or that it has not met the required financal objective in carrying out the work. In addition, Section 9 of the Local Government Act 1992 empowers the Secretary of State to make regulations defining anti-competitive behaviour, and he intends to make such regulations shortly.