§ Mr. DonohoeTo ask the Secretary of State for Scotland what safeguards exist to ensure that contracts for goods or services are awarded in a proper way by health boards or NHS trusts in Scotland when these contracts are not awarded by competitive tendering. [9848]
§ Lord James Douglas-HamiltonThere is a statutory requirement on all health boards and national health service trusts to undergo an end-year audit by external auditors to ensure that the trust's standing financial instructions, and any other financial instructions determined by the management executive of the natimal health service in Scotland, have been complied with.
§ Mr. DonohoeTo ask the Secretary of State for Scotland at what level(a) local authorities and (b) health boards and NHS trusts in Scotland are obliged to enter into a competitive tendering exercise before agreeing a contract for goods or services. [9849]
§ Lord James Douglas-HamiltonLocal authorities make their own standing orders covering financial probity in the handling of contracts and other matters. They are required to submit certain services to compulsory competitive tendering. As a result of local government reform, most of the compulsory competitive tendering requirements have been temporarily suspended, with the exception of construction contracts over £500,000.
Health boards and NHS trusts are required to include in their standing financial instructions detailed procedures on the procurement of goods, services and works by competitive tendering or other means. These instructions include the setting of locally agreed thresholds above which quotations or formal tenders must be obtained.
Local authorities and health boards and NHS trusts must also have regard to EC procurement directives, including the thresholds for the advertising of contracts.