17 Public-private partnerships and public
contracts and concessions
| (25648)
9206/04
COM(04) 327
| Green paper on public-private partnerships and Community law on public contracts and concessions
|
| Legal base | —
|
| Department | HM Treasury
|
| Basis of consideration | Minister's letter of 26 October 2004
|
| Previous Committee Report | HC 42-xxiii (2003-04), para 16 (16 June 2004)
|
| To be discussed in Council | Not known
|
| Committee's assessment | Politically important
|
| Committee's decision | Cleared, but relevant to the debate on services of general interest in European Standing Committee C (decision reported on 16 June 2004)
|
Background
17.1 This Green Paper was intended by the Commission to initiate
a consultation on the application of Community legislation on
public contracts and concessions to public-private partnerships
(PPPs). It was not concerned with the decision to contract out
public services or retain them in the public sector. The Commission
said such a decision remained squarely within the competence of
the public authorities of Member States.
17.2 When we examined and cleared this document in
June 2004 we asked to have in due course the Government's response
to the Commission's call for comments.[42]
The Minister's letter
17.3 The Financial Secretary to the Treasury (Mr
Stephen Timms) now writes with a copy of the Government's response.
He apologises that this has not come to us earlier. On the substance
the Minister tells us that during July and August 2004 the Government
held conferences and meetings to ascertain the views of representatives
of the public and private sectors. He says the consultation "did
not expose any issues of concern raised by the Commission, either
ineffective legislation or barriers to competition preventing
the involvement of non-national companies in European PPP programmes."
17.4 The Minister adds:
"Our response accordingly reflects the outcome
of these meetings; in particular both the public and private sector
informed us of:
— The
need for the 'competitive dialogue' procedure to be interpreted
flexibly;
— sub-contracting conducted by the private
sector entities should not be subject to further regulation beyond
the initial competition; and
— step-in rights remain as an option as
they form an integral part of a funder's security over a project.
"Consultation leaves us unconvinced of the
value to be added by a common legislative framework and obligations
for PPPs at EU level particularly as Member States are currently
in the process of implementing the two new procurement directives
(2004/18/EC and 2004/17/EC). We propose that the Commission's
role in PPPs should be as a catalyst in developing successful
PPPs rather than direct involvement through regulation or legislation.
"Separate legislation to create a uniform
approach in the EU would result in a resource intensive task with
compliance burdens for businesses, reducing the competitive market
appetite for competing for public service contracts, as well as
undermining the flexibility needed to develop successful PPPs
within the context of national circumstances."
Conclusion
17.5 We are grateful to the Minister for this
information. Although it is belated we are glad it has arrived
in time for the debate we have recommended in Standing Committee
C on the White Paper on services of general interest,[43]
for which we have already said this document is relevant.[44]
42 See headnote. Back
43
See (24595) 9824/03 (25476) 7549/04 (25679) 9643/04: HC 42-xxiii
(2003-04), para 1 (16 June 2004). Back
44
See headnote Back
| 
