'Best value' cover for lowest price

Exclusive by John d'Arcy



Many council direct labour organisations (DLOs) fear that the Government's new "best value" regime for local authority contracts will prove little more than a smokescreen disguising the fact that competition remains based on lowest price tenders.

If this is not the case, asked a Ucatt spokesperson, "why are DLOs effectively being excluded from the provision of, and also increasingly from the repair and maintenance of, local authority and other social housing?"

The union said that council DLOs have long operated at a disadvantage under the previous compulsory competitive tendering policy. Ucatt claimed DLOs are forced to make a set return each year, and are unable to carry over surpluses or bid for private sector work.

It said that direct labour forces still remain under fire: "To an extent, we are still not clear what best value means in practice.

"From the reports we are receiving, we are not enamoured of it. If they are really interested in quality, why are they continuing to cut back on direct labour?"

Recent attacks on DLOs are said to have been particularly acute in Scotland, where North Lanarkshire and East Ayrshire have been issued with closure notices and five other authorities face difficulties and possible significant losses.

The union added: "Nobody appears to be questioning the quality of the work provided."

Fifteen DLOs in England alone were served notices last March asking them to explain debts, and eight were asked to cut losses.

Ucatt concluded: "If there is to be a radical change, we would like again to see local authorities become providers of new social housing and deliverers of major regeneration projects with their directly employed staff involved in the work."