§ Mr. RoweTo ask the Secretary of State for the Environment if he has yet considered the response by Gosport borough council to the notice served on the authority on 9 May under section 13 of the Local Government Act 1988; and if he will make a statement.
§ Mr. BaldryMy right hon. Friend has carefully considered the response of Gosport borough council to the notice which was served in respect of the award of a contract for other cleaning work to the authority's direct labour organisation. He accepts that the council may not have intended to act anti-competitively, but takes the view that the council's actions were likely to have the effect of restricting or distorting competition, and in the event did so. Consequently he has today given the authority a direction under section 14 of the Local Government Act 1988.
The direction requires the council to re-tender the relevant contract so that new arrangements are in place by 1 October 1995, and to seek my right hon. Friend's consent should they wish to re-assign the work to the in-house team.
The authority restricted competition in that, prior to the return of tenders, they asserted that the Transfer of Undertakings (Protection of Employment)—TUPE— Regulations would apply and decided to consider only TUPE-based bids. They also failed to provide tenderers with substantive details regarding the possible availability of depot space.
The Government will continue to act against councils whose actions amount to anti-competitive behaviour. We are determined to ensure that obstacles which stand in the way of full and fair competition are removed, so that taxpayers continue to get value for money for quality services.