§ Mr. BurstowTo ask the Secretary of State for Health what assessment he has undertaken of the implications of the Competition Commission Tribunal Appeal Judgement Bettercare Group Ltdv. The Director General of Fair Trading on resources allocated by government to the purchase of residential care by statutory social services providers from the private sector. [76215]
§ Jacqui SmithThe competition commission appeal tribunal's (CCAT) judgment in the Bettercare case stated that the Competition Act 1998 applied in the particular circumstances that were presented. One implication of this is that potentially local councils' commissioning of care services could be subject to the Competition Act, but each case would need to be considered in the context of its facts. The judgment did not comment on whether the particular health and social care board involved in the case or other councils are presently contravening the Act. The Office of Fair Trading (OFT) will now reconsider the issue of the alleged anti-competitive conduct of the board involved in the case. Beyond this, no general assessment of the implications of this ruling can be made. I understand that in deciding not to appeal the judgment the OFT had in mind that the European Court is currently considering a similar case (case T-319/99 FENINv. European Commission). The outcome of this case is expected before the spring of 2003. This may assist in clarifying further whether the Act applies to the commissioning functions of public bodies.