§ Mr. David PorterTo ask the Chancellor of the Exchequer if he will make a statement on the circumstances in which a company owned 51 per cent. by the Government of another European Union country and 49 per cent. by an American company can bid by competitive tender for British business. [22047]
§ Mr. Nelson[holding answer 2 May 1995]: The EC treaty would normally require a company established in a member state to be treated equally with British suppliers. The treaty and the transparency directive—80/723/EEC as amended—will ensure that public funding which could give competitive advantage is subject to scrutiny. For public contracts and certain contracts in the energy, water, transport and telecommunications sectors, the EC procurement directives reinforce the treaty provisions and, as a rule, require competition. For Government contracts, the policy is to seek best value for money through competition, normally by competitive tender. However, it is not possible to give a definitive reply on the eligibility of a particular company without knowing the full circumstances.