KCC cleared of competing unfairly
by business editor Trevor Sturgess
Kent County Council has been cleared of
competing unfairly with business.
After a probe of KCC’s commercial
activities, the Audit Commission says it has found “no evidence of
any financial support or cross-subsidisation…that gives any
competitive advantage”.
It concludes that “Commercial Services
and the council’s subsidiaries understand the limits to their
powers and act within them”.
KCC commissioned the report after
private sector bosses complained bitterly about alleged unfair
competition, especially in recruitment, transport and landscaping
operations. Kent Top Temps and Kent Top Travel in particular have
both been accused of winning contracts from private sector rivals
with artificially low tenders and hidden subsidy.
Read the thoughts of our political
editor Paul Francis on the
report>>>
Although the audit watchdogs cleared
KCC, they recognised private sector concerns about an alleged lack
of transparency. They urged the council to disclose more
information, prepare longer accounts and undertake “independent
reviews” of council contracts won by its commercial arm.
Roger Gough, KCC cabinet member for
corporate services, welcomed the findings: “In terms of matters of
substance, this report has given a clean bill of health."
He said the council accepted all the
recommendations and promised more transparency in future. But there
would be no change in strategy because profits from commercial
activities - £6.4m last year - eased pressure on Council Tax.
Jack Parkinson, chairman of recruitment
group HR-GO, based in Ashford, said KCC’s commercial activity made
a mockery of its Backing Kent Business campaign.
“We’re all playing this game and pretending
that KCC is helping local business but they are certainly not
helping ours – they are competing with us,” he said.
* More in Kent Business, out this week
with the Kent Messenger,
Medway Messenger,
Kentish Gazette and
Kentish Express.
Wednesday, September 02 2009