§ Mr. McLeishTo ask the Secretary of State for Scotland if he will make a statement on the criteria laid down for the acceptance of bids from organisations tendering as part of compulsory competitive tendering and in particular the grounds on which a local authority can select a bid other than the lowest.
§ Mr. Stewart[holding answer 23 November 1992] It is for local authorities in the first instance to decide on the award of a contract. In doing so, they must have regard to the compulsory competitive tendering provisions of the Local Government, Planning and Land Act 1980 and the Local Government Act 1988, and particularly to the requirement not to act in a manner having the effect or intended or likely to have the effect of restricting, distorting or preventing competition. The Scottish Office Environment Department issued guidance to local authorities in March 1991 (Scottish Office Environment Department Circular 6/1991) on what does or does not constitute anti-competitive practice, and guidance regarding the non-acceptance of the lowest bid. That guidance will be superseded by new guidance and regulations, the terms of which have recently been the subject of consultation.