HC Deb 27 May 1993 vol 225 cc716-7W
Mr. Richards

To ask the Secretary of State for Wales if he will lift the requirement for local authorities in Wales to expose work to competitive tendering before and after local government reorganisation.

Mr. David Hunt

"Local Government in Wales: A Charter for the Future", Cm 2155, affirms the Government's commitment to compulsory competitive tendering—CCT—as a means of ensuring that local government services are efficient and give good value for money.

It also proposes special arrangements for CCT during the transition from the present structure of local government to the new unitary authorities. I have been considering the detail of those arrangements for work which is currently subject to CCT and have concluded that, generally, local authorities should not be required to submit to competition work which they propose to carry out between 1 April 1994 and 30 September 1996.

This period of exemption is intended to smooth the transition to the new authorities. They will be able to examine the best way of organising their services and, where appropriate, put fresh arrangements in place before exposing work to competition. More importantly, they will be able to focus, in the time after their election, on the immediate requirement to establish reliable and effective service delivery arrangements. The proposed exemption would apply to CCT under the Local Government, Planning and Land Act 1980 and the Local Government Act 1988, and would be given effect by secondary legislation under those Acts.

I have decided that there are nevertheless some circumstances in which competition should continue to be required. These are: (i) construction contracts worth over £1 million. This would affect primarily the highways departments of county councils; (ii) work carried out by authorities, such as community councils, to which the 1980 and 1988 Acts apply but which are not affected by the reorganisation.

None of these arrangements will affect contracts which the private sector in Wales has already won through CCT. The White Paper makes it clear that, where such contracts expire after the date of reorganisation, they will run for their full term and will be assigned to the appropriate unitary authorities. Detailed guidance on this, and on technical aspects of the transition as it affects direct service organisations, will be issued.

These arrangements would not prevent authorities from voluntarily submitting work to competitive tendering during the period of the exemption. Nor would they have any effect on competition requirements set by the European Community.

CCT will not be further extended in Wales until after reorganisation has taken place. The timetable will be discussed with the local authority associations and an announcement will be made in due course.