RSLs will have to tender across the EU

16 Sep 04
Housing associations have lost a long-running battle to avoid European Union procurement regulations after the UK government decided against challenging a European Commission ruling.

17 September 2004

Housing associations have lost a long-running battle to avoid European Union procurement regulations after the UK government decided against challenging a European Commission ruling.

The National Housing Federation and its partner organisations had urged the government to fight the ruling, which classes registered social landlords as bodies governed by public law in the same way as local authorities.

This requires them to put service contracts and capital programmes above a certain threshold out for tender across the European Union. RSLs claim the ruling, which was the subject of negotiations over three years, will lead to increased bureaucracy.

But the Office of the Deputy Prime Minister announced on September 10 that landlords must comply with the regulations. 'The purpose is to open up the public procurement market to better ensure free movement of goods and services within the EU,' said the ODPM.

However, NHF chair Richard Clark described the decision as disappointing. 'At a time when we are supporting a drive for efficiency, more bureaucracy is the last thing we need,' he said.

PFsep2004

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