17 May 2002
Unison last week made top-level representations to the inspection body and demanded assurances that the replacement for Best Value, being introduced later this year, will not be used to put pressure on authorities to sell off services.
The union's head of local government, Malcolm Wing, wrote to commission controller Sir Andrew Foster in protest at what he says is an attempt to link the outsourcing of services to success in CPA inspections.
The letter, seen by PF, castigates the local government watchdog for implying that councils that contract out large numbers of services are likely to score well in CPAs, which will rank all authorities as high-performing, striving, coasting or failing.
Wing's criticisms relate to two documents published by the commission, Delivering CPA and Competitive procurement. He argues that the latter clearly equates effective procurement with privatisation, and echoes the language of the CPA classifications.
'It is clear to Unison that there is a culture in some parts of the Audit Commission which equates outsourcing with high performance by councils, a view which we strongly challenge,' Wing wrote.
'Competitive procurement seems to bear this analysis out by demonstrating a correlation between the outcome of inspection reports and the "competitiveness" of the procurement process.'
The letter also criticises the Audit Commission for failing to emphasise workforce consultation in procurement decisions, or the need to maintain equality standards.
'There is still a real concern that councils will understand the commission to be biased in favour of private sector delivery of public services. If this is not the commission's position we believe this needs to be made very clear – very soon.'
Wing told PFthe commission was going 'way beyond its remit' and taking it upon itself to give local authorities an 'ideological lecture'. He called on the body to confine itself to giving councils advice and assistance.
'The basic message coming from the Audit Commission seems to be that competition rules OK,' Wing said. 'It is a powerful and influential body and local authorities ignore the mood music coming from it at their peril.
'If councils' performance is going to be judged by their willingness to go out to competition and promote the role of the private sector, that represents a worrying development.'
The Audit Commission's head of inspection, Paul Kirby, strongly rejected the suggestion that authorities would have to privatise services in order to win a 'high performing' or 'striving' rating.
'Procurement doesn't mean using the private sector, it means thoroughly thinking through the services you need and how these are best provided. The Audit Commission advocates good, open-minded procurement practice, we don't advocate privatisation. We are agnostic,' Kirby said.
'As far as CPAs are concerned, we would expect councils to look thoroughly at how their services are provided but not outsource for the sake of it.'
PFmay2002
