Come Clean on Competition

12.00.00am GMT Mon 3rd Mar 2008

KCC is just giving businesses the run around at the moment

Trudy Dean, Lib Dem Group Leader at Kent County Council is calling on KCC to come clean about the dealings of its own 'arms length' companies. She has criticised KCC's refusal to answer Freedom of Information questions about the activities of these companies, and asked for details of any 'hidden' deals which might cut private businesses out of the loop.

Private companies in Kent say KCC is poaching their business in transport, temporary staff and advertising in particular. At a recent meeting with KCC , local bus companies and temp agencies questioned how Kent Top Travel Ltd and Kent Top Temps Ltd were winning contracts at prices so low they could not possibly be matched by private business. KCC claimed that their companies were free standing with 'no cross subsidy', but companies pointed to the use of £1m of Council Taxpayers money to set up Kent TV.

'Kent on Sunday' submitted three questions in December and January under the Freedom of Information Act asking for details of contracts won by KCC arms length companies. KCC refused to answer these questions on the grounds that 'it would take in excess of 18 hours… equivalent to £450' to collect the information and that they were therefore 'not obliged to deal with requests which exceed the appropriate limit.'

As a Member of the County Council, Trudy Dean asked almost identical questions, on 14th February and received one answer in full and one in part on the following day. The answers were given "to comply with the spirit of the request". She was however told that the details must remain confidential because they were 'commercially sensitive'. She has challenged that ruling since it included the value of contracts some of which were already known to losing bidders.

Trudy has also discovered that internal KCC staff are advised to ask Kent Top Temps for any temporary staff before approaching any other firm, and only then should alternative quotes be sought. It is understood that next month this guidance will become an instruction. All this is despite KCC's published Selling Guide which states that "we tender our contracts to get the best value for money, ensure our processes are transparent and to maximise competition".

Trudy said "KCC is just giving businesses the run around at the moment. If they want to prove that everything is open and above board this is not the way to do it. If information is sought which is confidential, they should not claim it is too expensive to collect. If they say they want to maximise competition, then why is Kent Top Temps receiving clear favouritism? KCC can't have it both ways.

They are clearly cutting private temp agencies out of the loop, and we need to know if this is happening in other areas.

KCC claims that the ratepayer gets a good deal as the profits from these businesses are returned to KCC. But unless they can show that those profits are earned without an unfair advantage, businesses have a good reason to cry 'foul'. You don't expect to pay taxes to a council which is trying to put you out of business".

Trudy has initiated a debate at the next Council meeting calling on KCC to ask their 'external Auditors to confirm that there is no cross subsidy from rate payers, and to set out clearly the trading and financial relationship between KCC and these companies'.

Full Text of the Motion for Debate at next Council Meeting on April 3rd.

"The County Council notes the concern and distrust expressed by Kent businesses about the activities of KCC's arms length companies and agrees to

1. ask its external Auditors to confirm that there is no cross subsidy from rate payers, and to set out clearly the trading and financial relationship between the County Council and these companies, and

2. assist in the setting up of a county wide forum which would speak for Kent businesses, large and small, on issues affecting the viability of commerce and industry and therefore employment in Kent."

Trudy Dean