§ Mr. CongdonTo ask the Secretary of State for the Environment what changes he proposes to the existing framework for compulsory competitive tendering from local authority housing management and professional services. [30643]
§ Sir Paul BeresfordYes. Compulsory competitive tendering is improving the standards of local government services and delivering greater efficiency. However, the implementation of CCT for professional services and housing management has given rise to significant criticism from private sector bidders and professionals about the approach which many authorities have taken. They consider that many authorities are frustrating competition by any means at their disposal. Equally, local authorities have said that the competition is too weak to justify the start-up costs of competition. Against this background, the Secretary of State has reviewed progress on implementation to date and the preparations which local authorities are making for future CCT. This has confirmed the need for changes.
A consultation paper has been published today which sets out the details on the changes which the Secretary of State is minded to make. The proposals involve selective increases in the competition requirements, most notably a new 65 per cent. competition requirement on finance services, tightening-up the rules on the credits and allowances which local authorities can offset against the competition requirement, and changes to the values below which authorities do not need to go out to competition, most notably on housing management services. These changes will complement the new guidance on competition which was issued earlier this year and the robust line being taken with cases of anti-competitive behaviour by particular authorities.
A copy of the consultation paper, which invites comments by Tuesday 2 July, has been placed in the Library.