§ Mr. JackTo ask the Chancellor of the Exchequer if he will make a statement on the implications of a company becoming the subject of a company voluntary arrangement under the Insolvency Act for that company's ability to compete for public contracts. [105296]
§ Mr. TimmsCompanies which become the subject of a company voluntary arrangement under the Insolvency Act 1986 would not automatically be barred from bidding for public contracts. The objective in public procurement is to secure value for money, having due regard to propriety and regularity. To achieve this, purchasers need to assess the financial and economic standing of potential bidders and to satisfy themselves that they meet the 511W requirements for the particular contract. Where the EC rules apply there is specific provision which allows purchasers to exclude potential bidders who have an arrangement of this type. It is for the purchasing authority to decide whether to rely upon this provision in any competition.