HC Deb 02 February 1987 vol 109 cc491-2W
Dr. Cunningham

asked the Secretary of State for the Environment if he will take steps to ensure that competition between private firms and local authority work forces will be carried out on wholly fair terms.

Mr. Ridley

I am glad to have the hon. Member's support for the principle that local authorities, in carrying out their duties under the forthcoming competition lgislation, must ensure fairness of treatment as between their DLOs and private contractors. I also expect his support for the necessary powers to deal with those who attempt to protect their DLOs from fair competition; and for similar rules to protect the private sector from unfair competition from local authority businesses.

Dr. Cunningham

asked the Secretary of State for the Environment if the powers he proposes to take to oblige local authorities to seek competitive tenders for their services will enable him, without further primary legislation, to oblige councils to tender for the provision of (a) teaching, (b) police, (c) fire, (d) planning control and (e) environmental health services; and if he will make a statement.

Mr. Ridley

The Government do not envisage using the enabling power in the forthcoming Local Government Bill to introduce compulsory competitive tendering for the provision of the services listed by the hon. Member. However. I believe that the power is necessary so that the competitive process can be extended to other support services after the initial tranche of activities. Orders made under this enabling power would be subject to parliamentary scrutiny.

Dr. Cunningham

asked the Secretary of State for the Environment if he has conducted or intends to commission any research to establish the administrative implications of introducing compulsory tendering procedures for (a) vehicle maintenance, (b) office cleaning, (c) street cleaning, (d) refuse collection, (e) the management of leisure centres, (f) ground maintenance and (g) catering services.

Mr. Ridley

There is already a considerable amount of independent professional advice on the administrative implications of competitive tendering. The Government therefore have no plans to commission any research at present.

Dr. Cunningham

asked the Secretary of State for the Environment if he has made any estimate, in accordance with the principles of the financial management initiative, of the overall savings that he expects to secure by introducing compulsory competitive tendering in relation to (a) vehicle maintenance, (b) office cleaning, (c) street cleaning, (d) refuse collection, (e) the management of leisure centres, (f) ground maintenance and (g) catering services; and how he proposes to monitor whether those savings are achieved.

Mr. Ridley

Local authorities which have contracted out service provision as a result of competitive tendering regularly report savings of 20 per cent. to 30 per cent. on previous costs. If all authorities matched this, savings would exceed £500 million per annum. Decisions on how best to monitor the future level of savings will be taken in due course.