§ Sir George GardinerTo ask the Secretary of State or the Environment if he has yet considered the response by Reigate and Banstead borough council to the notice served on the authority on 6 November 1995 under section 13 of the Local Government Act 1988; and if he will make a statement. [23588]
§ Sir Paul BeresfordMy right hon. Friend has considered carefully the response which Reigate and Banstead borough council has made to the notice served on the authority on 6 November 1995. He is still of the view that the authorities' actions during the tender process for the two contracts, worth £363,000, had the effect of distorting and restricting competition.
He has today given the authority a direction, under section 14 of the Local Government Act 1988, requiring it to retender the work, included in the grounds maintenance contracts 1 and 2, which was the subject of the notice, so that new arrangements are in place by 1 January 1997, and to seek the Secretary of State's consent should it wish to reassign the work to the direct service organisation.
The Government are fully committed to fair and open competition for local authority services and we are determined to ensure that obstacles which stand in the way of such competition are removed.