UK faces tender trap
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/ British companies bidding for public service transport contracts will face increased competition when new EC legislation is passed next year.
The legislation bans local authorities from favouring local or even national companies when awarding contracts. All contracts worth more than £140,000 will have to be offered for tender throughout Europe. UK firms will also bid for business on the Continent.
The aim of the directive is to provide equal treatment for all public tenderers, ruling out the disadvantage of being in a less favoured region of the EC.
French-owned Sitaclean recently won a refuse collection and street cleaning contract in Doncaster. "Because of compulsory competitive tendering most of the Continental players are here anyway," says Sitaclean managing director Brian Carter.
Contract hire specialist Wincanton is not opposed to the new law "providing member states are not subsidising tenders", according to managing director David Yeomans, who says his firm is unlikely to bid for European contracts unless they have "added value".