§ Lord Dholakiaasked Her Majesty's Government:
Why they oppose the European Parliament amendments to the proposals for revision of the European Union Public Procurement Directives, which would permit wider use of social criteria at the award stage. [HL711]
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)The Government view the proposals for revision of the EC Public Procurement Directives, which reached political agreement at the May 2002 Internal Market, Consumer Affairs and Tourism Council, as achieving the right balance on the use of social criteria at the award stage of the procurement process. The use of social criteria at this stage is permissible where such criteria are relevant to the subject matter of the contract, and provide a benefit to the contracting authority. Going beyond this, at the award stage, which would be the effect of certain EP amendments, would not be consistent with the principles, including value for money, on which the directives are based. It is at the earlier, specification stage that relevant wider issues should be considered.
§ Lord Dholakiaasked Her Majesty's Government:
Whether they will review their position in the light of the recent European Court of Justice ruling in the Helsinki Concordia Bus case (C513–99) which reinforces the principles of the Commission v. France ruling (C225–98) relating to the scope for inclusion of social consideration in the award stage of a contract. [HL712]
§ Lord Sainsbury of TurvilleNo review is considered necessary. Whilst the Court (in case C-513/99) stated that it is permitted in principle to use criteria "relating to the preservation of the environment" when awarding a contract, the judgment makes it clear that such criteria must be linked to the subject of the contract, not confer an unrestricted freedom of choice on the authority, be expressly mentioned in the ' contract documents or the tender notice, and comply with all the fundamental principles of Community law, in particular of non-discriminiation. This is in line with Ole UK's understanding of the position under the current EC procurement directives. The judgment does not, therefore, require a change to the normal value-for-money criteria permitted at contract award stage. The Commission v. France ruling (C-225/98) does not have any direct bearing on the use of environmenal award criteria. There, the Court held that it might be possible in limited circumstances for a condition relating to unemployment to be used as a contract ward criterion if it complied with the198WA fundamental principles of Community law and the rules on advertising.