Worst HAs as well as councils could be forced to compete
Both councils and housing associations look set to be forced to put some services out to tender under the Best Value regime.

It has emerged that the government is keen to stress the competition element of Best Value this autumn, and is edging towards some element of compulsory tendering for poor performers.

One option includes compelling the worst quarter of landlords to put at least some of their services out to tender.

And such an approach may not be confined to councils. It is understood that the Housing Corporation is considering forcing poor performers to tender some services under its plans for Best Value. This follows criticism that that agency failed to put sufficient emphasis on competition in its initial plans.

One source said: "The issue is whether benchmarking is enough or whether a certain amount of turnover should be put out to tender. It's an issue that has not really been resolved." National Housing Federation head of housing and support Liz Potter said: "It is likely that if RSLs don't really challenge their services and look to alternative means of provision where they are not doing all well, then the corporation may insist on competition at least for the worst performing areas."

But she added: "The corporation must not be too prescriptive."

Corporation officials have admitted they were surprised by figures from the National Housing Federation which showed "very few" examples of out-sourcing by housing association of core activity (Housing Today, issue 138).

Corporation head of housing management Roger Jarman said: "We want the sector to respond positively to Best Value and hope that RSLs will look to put more of their services out to competition than they have hitherto. Obviously we are looking for better service delivery for tenants and residents. Competition is one of the ways that this can be achieved."

In public statements ministers are now going much further than they have in the past on the part of competition in Best Value. Speaking at the New Local Government Network conference earlier this month housing minister Hilary Armstrong said: "External procurement should be used if best value is likely to be available from another provider, even if the in-house service is performing adequately. Adequate is not enough."

Chartered Institute of Housing director of professional practice Ross Fraser described Armstrong's remarks as "very significant."

The news came as protocols establishing the powers of the secretary of state to intervene in failing housing departments were published. Under them deputy prime minister John Prescott will have extra powers to intervene in urgent cases "where the severity or persistence of failure, or the continuing risk of harm or financial loss, show that urgent intervention is necessary."

Source

Housing Today