§ Mr. HunterTo ask the Secretary of State for the Environment if he will make a further statement on the measures which he is taking to implement compulsory competitive tendering.
§ Mr. Robin SquireRegulations and guidance to be issued under section 9 of the Local Government Act 1992 are expected to be in place early in the new year. These regulations and guidance will clarify the statutory framework for services currently subject to compulsory competitive tendering.
On 10 November, Official Report, columns 743–45, my right hon. and learned Friend the Secretary of State for the Environment announced his decisions following consultation on proposals to extend competition to local authorities' professional services. A preliminary meeting about the detailed implementation of these decisions has been held with the local authority associations, the Convention of Scottish Local Authorities, the Audit Commission, the Accounts Commission, and the Chartered Institute of Public Finance and Accountancy.
§ Mr. Mike O'BrienTo ask the Secretary of State for the Environment what percentage contract saving his Department uses for assessing savings as a result of council compulsory competitive tendering on contracts valued at above £100,000 and below £500,000.
§ Mr. Robin SquireThe Secretary of State does not assess the savings on individual local authority contracts. Research carried out by the Institute of Local Government Studies for the Department of the Environment indicated that following competition there was an overall reduction of about 6 to 7 per cent. in the cost of work subject to compulsory competitive tendering under the Local Government Act 1988, whether the service was carried out in-house or by a private contractor.
§ Mr. Mike O'BrienTo ask the Secretary of State for the Environment what the current level for the de minimis level would be for compulsory competitive tendering if it had been upgraded in line with the retail prices index.
§ Mr. Robin SquireThe amount is £132,041.
§ Mr. Mike O'BrienTo ask the Secretary of State for the Environment how many contracts valued at between £100,000 and £500,000 have been put out to tender by councils under compulsory competitive tendering in each year since 1988.
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§ Mr. Robin SquireThis information is not held centrally.
§ Mr. Mike O'BrienTo ask the Secretary of State for the Environment what proposals he has to adjust the de minimis level to take account of inflation since 1988 for local authority compulsory competitive tendering.
§ Mr. Robin SquireThere are no proposals to adjust the de minimis level, although it is kept under review.
§ Mr. Mike O'BrienTo ask the Secretary of State for the Environment what is the average cost of putting a contract out to tender for councils under compulsory competitive tendering.
§ Mr. Robin SquireResearch carried out by the Institute of Local Government Studies for the Department of the Environment indicated that the average cost of preparing for competition was about 2.5 per cent. of the total contract value.