HC Deb 15 June 1993 vol 226 cc540-1W
Mr. Clifton-Brown

To ask the Secretary of State for the Environment what plans he has to introduce a de minimis threshold to exempt smaller local authorities from compulsory competitive tendering for construction-related and corporate services.

Mr. Curry

Competition provides many benefits to local authorities: better managed services, higher quality work and significant financial savings. However, the Government recognise that CCT involves additional administrative requirements, which need to be taken into account.

For this reason we introduced de-minimis thresholds for the services subject to CCT under the Local Government Planning and Land Act 1980 and the Local Government Act 1988. Where the amount of work falls below these thresholds, authorities are not obliged to seek competitive tenders—though they can do so voluntarily if they wish.

During our joint discussions on the implementation of white-collar CCT, local authority representatives have proposed that de-minimis thresholds should similarly be adopted for professional and corporate services.

I have considered these comments, and accept the principle. I have asked my officials to discuss with local authority representatives the appropriate form and amounts of the thresholds which will achieve broadly the same objectives as those thresholds already in place for manual services. I have also accepted the argument that a local authority needs a satisfactory staffing level to perform adequately the core client roles which may not be suitable for competitive tendering.

White collar CCT covers a range of different services. The deminimis thresholds adopted will need to reflect these differences. For some services, a threshold based on the total value of the service may be appropriate, for others one based on the number of staff employed, or a combination of the two, may better meet authorities' needs. I am anxious that we consider all options.

I will make further announcements on the proposed thresholds for individual services in due course.

As with the existing services, local authorities will of course be free to tender services below threshold levels voluntarily. Authorities should take every opportunity to improve services and reduce costs through market testing.

Meantime, I hope this early announcement about the decision in principle to adopt deminimis thresholds for the white collar services will be helpful to local authorities.