Public Services

Debate between Lord Greenhalgh and Viscount Hanworth

Tuesday 26th October 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, it will not surprise you that I do not agree with that. Some £64 billion-worth of money is being spent by local government on the delivery of very efficient services through the private sector, but you have to be very careful about how you engage. There are plenty of examples where local authorities have not used competitive tendering but have chosen to enter into partnerships, which have had tragic consequences in the last year because of the pandemic. So I encourage local authorities to be judicious, fulfil the guidelines that are supplied around procurement, go through sensitive competitive tendering and check the creditworthiness of those whom they choose to bring on board.

[Viscount Hanworth (Lab)]

Many of the firms to which the functions of local authorities have been outsourced are motivated by considerations other than public service: the profit motive is dominant. I am aware of one firm, to which the traffic and parking services have been outsourced, that has been issuing spurious penalty charge notices for traffic offences. Their operatives are working under an incentive scheme. Their supposition is that many people will automatically pay the penalties, fearing that, if they do not, the charges will be doubled and they may be taken to court. Do the Government have any desire or means to address such abuses?

[Lord Greenhalgh (Con)]

My Lords, revenue from parking is ring-fenced, and most local authorities would never incentivise any staff who are doing this to start to fine—