Councils to consider firms' track records

by Kathy Watson



Local authorities will be encouraged to investigate the health and safety policy and equal opportunities track records of contractors under proposed legislation on local government to be introduced soon.

Local government minister Beverley Hughes told an Improvement and Development Agency (IDeA) conference last week that she is proposing to amend Part II of the Local Government Act 1988. This would free local authorities to investigate a wide range of employment practices among contractors. Details are contained in a new consultation paper called Best Value and Procurement.

The Act was introduced by the Conservative government to prevent local authorities from favouring their direct labour organisations at the expense of outside contractors.

Hughes said: "Current legislation was introduced to prevent councils from discriminating against potential contractors by introducing irrelevant considerations into the bidding process.

"But it has prevented genuine inquiries of a potential contractors workforce and management practices even where such matters are relevant to the quality and value for money of a contract."

The draft guidance in the consultation paper sets out how to take account of the track record that a local government partner has on training issues and employment practices.

John Crosbie, IdeA's best value consultant, said the move would bring the UK into line with European Union practice. "The legislation will question some of the old political stereotypes and dogmas which were preventing contractors gaining ground."

Under Best Value legislation which came into effect in April, local authorities will need to demonstrate over a five-year cycle that the services they provide are delivered in the most efficient and effective way possible. Failure could lead to the withdrawal of their budgets.