HC Deb 12 December 2000 vol 359 cc75-6W
Mr. Gerrard

To ask the Secretary of State for the Environment, Transport and the Regions when he will amend Part II of the Local Government Act 1988. [142558]

Ms Beverley Hughes

I have today laid before Parliament a draft Order under section 19 of the Local Government Act 1999, which modifies the list of `non-commercial' matters, set out in Part II of the Local Government Act 1988, which are currently excluded from local authority contracting. The Order provides for relevant workforce matters to cease to be defined as `non-commercial' matters for the purposes of Part II, to the extent that they are relevant to the achievement of Best Value and where the Transfer of Undertakings (Protection of Employment) Regulations 1981 (as amended) are to be applied.

Following completion of parliamentary consideration of the Order, a departmental circular will be published containing related guidance. The guidance will set out how Best Value authorities can consider workforce matters when selecting tenderers and awarding contracts. Our aim is to modify the restriction on consideration of workforce matters so that authorities can have proper regard to them in cases where they are relevant to Best Value and the quality of the contract.

These proposals meet two overriding objectives. Firstly by enhancing good procurement practice under Best Value and secondly by recognising that a well motivated and trained workforce is vital to the provision of quality local services. This will make a substantial contribution to achieving Best Value services in local government.

We have received over 120 responses to our Consultation Paper "Best Value and Procurement: Handling of Workforce Matters in Contracting" from local government, the private and voluntary sectors and individuals. I am grateful to those bodies and individuals that have responded. The revised Guidance takes account of the views expressed. A list of respondents is being placed in the Libraries of both Houses.

We intend to put in place with the Improvement and Development Agency (IDeA) a monitoring system to assess the impact of the changes both on local government and the private and voluntary sectors.

The Order and guidance applies to Best Value authorities in England and to police and fire authorities in Wales. The National Assembly will decide whether or not to make their own Order for local authorities in Wales.