Local Authority Services (Hansard, 10 November 1992)

§ Mr. Brooke

The Government believe that the wider application of competition to the provision of local authority services will bring significant benefits in terms of the quality and value for money for the public.

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Proposals to extend compulsory competitive tendering (CCT) to a range of local authority services, including arts facilities and library support services, were set out in the consultation paper "Competing for Quality", published in November 1991. I have discussed with my right hon. Friends the Secretaries of State for Scotland and for Wales the responses to that document which referred to arts and library services, and we are agreed on the way forward in those areas.

On arts facilities, my Department received some 180 responses, mostly from local authorities and arts organisations. We are grateful for the helpful comments contained in those responses. In reaching conclusions, I have also taken into account the Audit Commission's report "Local Authorities, Entertainment and the Arts" (January 1991), which identified three principal weaknesses in local authority arts management: lack of policy objectives, absence of monitoring of performance and inadequate financial control.

On the evidence before me, I am satisfied that there is scope to improve local authority arts provision through the introduction of increased competition. However, I have also concluded from that evidence that there are appreciable differences between the management of arts facilities and that of most of the other services to which the extension of CCT has been set out in a written reply by my right hon. and learned Friend the Secretary of State for the Environment. Particularly important considerations are the wide diversity between local authorities in the extent and type of arts facilities provided and the very long planning times required in drawing up arts programmes.

In view of these differences, I propose to commission consultants to undertake further studies in order to determine how competition might best be applied to this area of local authority management. In addition, to assist local authorities in clarifying and monitoring their service objectives, the Audit Commission will be invited to identify and disseminate models of good practice.

With regard to public library support services, we received 130 responses to the consultation paper from commercial library suppliers, individual librarians and members of the public as well as from local authorities. Many local authority responses drew on experience with existing contracts for library support services or on studies which they had already carried out into the potential for contracting out support work. I am grateful for the helpful way in which respondents dealt with our proposal.

From this evidence, it is clear to me that competition has already resulted in value for money from library support services and that there is little scope for further cost reductions in the areas covered in the consultation exercise. I have concluded, therefore, that CCT for support services would not necessarily be the best way forward for encouraging greater competition in the public library field.

However, I do see scope for extending the contracting out of services in the library field, if necessary on a compulsory basis. The consultation exercise showed a need to consider library operations on a wider basis, rather than arbitrarily designating certain aspects in advance as ancillary. I therefore propose a thorough investigation, based upon a series of pilot projects designed to examine the feasibility of contracting out the direct delivery of all or various parts of the library service. These will take place over the next 18 months and, throughout the investigation, I look forward to a close partnership with local authorities 687W and other interested organisations including the library suppliers. My Department will establish a steering committee to advise and monitor the investigation.

Once the investigation is complete, I shall make the results widely available. I intend in so doing to set out a range of competitive options for library authorities to choose between, having regard to their particular circumstances.