§ Mr. Bevanasked the Secretary of State for the Environment whether, when private sector contractors are put to the expense of tendering and submit the lowest tender for local government work, he will seek to introduce a requirement to oblige the local authorities to reimburse contractors their tendering costs in the event of the contract being placed with a public sector body which submits a higher tender price for a tender which is on the same terms and conditions and with the same ability to perform.
§ Mr. StanleyThe particular proposal made by my hon. Friend would be very difficult to administer. However, I fully share his concern that a local authority should always have very good reasons for passing over the lowest tender. If it does so, it will of course have to satisfy its auditor.
§ Mr. Bevanasked the Secretary of State for the Environment whether, in view of the reduction often achieved in the electricity board's quoted price for maintaining street lighting following competitive tendering, he will seek to amend the Local Government Act so as to oblige local authorities to seek competitive tenders in such cases.
§ Mr. StanleyI fully endorse my hon. Friend's wish to see the maximum amount of public sector work put out to competitive tender. My right hon. Friends the Secretaries of State for the Environment and for Wales have today laid before Parliament the Local Government (Direct Labour Organisations) (Competition) (Amendment) Regulations 1982 (SI 1982 No. 325) which will increase the amount of local authority construction and maintenance work subject to competitive tender.
Section 135 of the Local Government Act 1972 already requires a local authority to make standing orders which provide for securing competition for its works contracts, though an authority can waive competition in what it considers to be special circumstances. However, in so doing an authority will need to have regard to satisfying its auditor that its decision was reasonable. Where an authority awards a negotiated contract, in circumstances where competitive tendering would have resulted in a lower price, it will also have to satisfy its auditor.
§ Mr. Bevanasked the Secretary of State for the Environment if he will take steps to collect statistics on the numbers of county councils for whom the electricity boards carry out street lighting maintenance exclusively, without competitive tenders being sought.
§ Mr. StanleyI have no present plans to do so, but if my hon. Friend has specific instances that are concerning him I will be ready to consider them.