§ Mr. Clifton-BrownTo ask the Secretary of State for the Environment what steps his Department is taking to ensure that when tenders for public work are invited by local authorities that they are in realistic commercial terms and without unnecessary contingent liabilities.
§ Mr. CurryLocal authority tendering procedures are governed by European rules and United Kingdom law as well as authorities' own standing orders. Authorities make their own decisions on the way in which they invite tenders, subject to the law and to financial propriety. They have a fiduciary duty to their taxpayers to operate effectively and efficiently and to secure the best value for money in the discharge of their functions. They must also justify their actions to the independent auditor appointed by the Audit Commission to check their accounts.
In the case of work subject to compulsory competitive tendering, authorities are under a specific statutory duty not to act in any way which may restrict, distort or prevent competition. My Department has issued guidance on the fair conduct of CCT, and has statutory power to take action against authorities acting in an anti-competitive way.