HC Deb 04 July 2001 vol 371 cc171-2W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what obligation is placed on public bodies in respect of(a) PPP, (b) PFI and (c) other financial arrangements, for advertising the relevant contracts in the (i) Official Journal and (ii) other publications of the European Community; under what article of which treaty and associated legislation any such requirement is made; what publication sets out the rules which must be followed in such agreements; and whether they apply equally to charitable and profit-making enterprises. [2133]

Mr. Andrew Smith

Contracting authorities/entities are required to call for competition for procurement contracts, above certain financial thresholds, in the Supplement to theOfficial Journal of the European Communities (OJEC). This includes PFI/PPP contracts where appropriate. Advertising in other publications is not mandatory, but must not pre-empt advertisement in OJEC.

This requirement arises from the EC procurement directives (which are based on principles of the EC Treaty). The principal legal basis was Articles 30, 57(2), 66 and 100a and the Directives have been implemented in the UK by the following Regulations (as amended):

  • The Public Works Contracts Regulations—SI 1991/2680
  • The Public Services Contracts Regulations—SI 1993/3228
  • The Public Supply Contracts Regulatims—SI 1995/201
  • The Utilities Contracts Regulations—SI 1996/2911.

The application of these Directives/Regulations to charities and profit-making enterprises depends on whether they fall within the definition of state, regional or local authority or "body covered by public law" for the purposes of the Regulations. The Directives do not normally apply to charities and profit-making bodies unless they propose to award a works contract funded for the most part by a public body.