§ Mr. HawksleyTo ask the Secretary of State for the Environment if he will make a statement on the development of compulsory competitive tendering of housing management.
§ Sir George YoungI have today issued a consultation paper to all housing authorities in England, the local672W authority associations and other interested organisations. The paper sets out the Government's detailed proposals on some of the key components of compulsory competitive tendering—CCT—of housing management. I am placing copies in the Library.
The consultation paper follows discussion with the local authority associations and the eight local authorities which are piloting housing management CCT. It also takes account of work done by consultants in co-operation with the pilot authorities.
The proposals in the consultation paper address the scope of the defined activity, which lists the functions which authorities will have to subject to CCT, unless they contract them out voluntarily, the timetable that authorities will have to meet when they are introducing housing management CCT, and the size of contract packages. It is intended that the orders implementing the first two components should be in place from 1 April 1994. The third component will be implemented by way of guidance.
I hope that issuing our proposals at this stage will help authorities in their detailed preparations for the introduction of housing management CCT. In addition, I am keen to have authorities' comments on the practical implications of the proposals, so that the final package takes account of the different circumstances prevailing in different authorities.
CCT represents a new direction and opportunity for the management of local authority housing. Competition will improve quality of service and value for money by testing the market. It will expand the opportunities for the involvement of the private sector in housing management, while ensuring that local authorities themselves have every opportunity to compete. The consultation provisions of the Leasehold Reform, Housing and Urban Development Bill, currently before Parliament, will ensure that tenants are fully involved throughout this process.
The Government want tenants to secure the benefits of CCT as soon as possible, allowing for the healthy development of the market. It is intended therefore that housing management CCT should be phased in over three years with the first contracts in operation from 1 April 1996. The proposals contained in this consultation paper are at the centre of housing management CCT and represent a major step towards its successful introduction.