HC Deb 28 June 1989 vol 155 c484W
27. Mr. Charles Wardle

To ask the Secretary of State for the Environment what he estimates would have been the additional costs so far incurred if services currently put out to competitive tender had not been so treated.

Mr. Gummer

Research carried out by the Audit Commission and published in its report "Preparing for Compulsory Competition" suggests that savings of at least 20 per cent. can be made on previous contract costs, irrespective of whether a private contractor or the in-house organisation wins the work. Figures relating to competition under the Local Government Act 1988 are not yet generally available.

Mr. John Marshall

To ask the Secretary of State for the Environment if he will make a statement about the latest estimate for the savings from competitive tendering by local authorities.

Mr. Gummer

The Department will be asking authorities to supply information on the first round of tendering shortly. Earlier research into the voluntary competition indicated that savings of 20 to 30 per cent. were available on an expenditure of some £3,000 million.