Information please.

Our LA funders are insisting that grants given to voluntary sector organisations over a set limit (£50K?) must now be subject to tendering due to recent EU regulations and that there are no opt outs from this directive (or if there is then the date to do so has passed).

The implication is that all local advice centre's with a grant over a set sum will have to tender against other possible providers in order to secure future funding. LA simply giving a grant is no longer an option.

Can anyone refer me to the appropriate EU directive / LA guidance etc Anyone else haing similar problems?

We`ve had similar issues over trying to set-up a Credit Union. If you can find it, see EU Directive 2005/842/EC regarding "funding of services for general economic interest" and also regs 23, 24 and 25 of Public Contract Regs 2006 ( UK legislation )regarding public sector procurements.
Our LA fell foul of EU directive above by trying to create/fund the CU in an apparent unfair/anti-competitive manner. We`ve now had to register an interest with EU, as part of a fair tendering process, so we are not seen to contravene EU open competition rules. This basically means that anyone else who wants to form a CU in this area is given the opportunity to do so within certain time-scales. The amount of any funding from a public body is important in the whole issue - think it`s 100,000 Euros and above rather than £50K.

thanks for that - I read the Regs (SI 5/2006) all 125 pages - with interest, well it makes a change from benefit regs, but am none the wiser!

I have also been checking with the various network organisations but can't find any briefings or policy docs on this issue. As your LA has raised this it cannot be that our LA has simply got the wrong end of the stick.

Has anyone else come across information on compulsory tendering for what was previously 'grant aid' funding?

We were worried in London that due to a fundamental change in the grants scheme of the Association of London Government, from open bidding rounds for grant funding towards instead commissioning of specific services, that the same scenario would apply.

However, we have been reassured that this is not so and we will not have this problem. I can't get hold of the person who may know more about this issue at present but I will endeavour to speak to him over next couple of days and let you know of any news Peter.

Paul - any info would be helpful - LA have now published draft proposals for 07-08 grant funding stating that there will be some form (unspecified) of tendering for advice services with tender docs to be issued in Sept.

The doc also says:
"the council may have to use a competative process. The LSC is currently consulting on proposals which may require the council to align its funding with theirs, requiring competative procurement procedures"

Seems a rather liberal interpretation of LSC proposals and their powers to 'require' LAs to go alone with thier plans!?

Any chance of a link to the directive? It's too hot for me to plough through it all and if someone has a direct link I would be eternally grateful

Margie

Here's the link to EU Directive 2005/842/EC -

http://eur-lex.europa.eu/LexUriServ/site/en/oj/2005/l_312/l_31220051129en00670073.pdf

Cheers for that ken

Peter, sorry for delay but my contact has been very busy - unfortunately, I'm not sure I can offer much now anyway.

Basically, it appears that the issue is whether the local authority are procuring statutory services, or whether they are still providing grants for specified services. If it is the former, then the EU competitive tendering stuff definitely applies, it seems.

If it is the latter, the picture isn't so clear. Apparently, LAs have a power under sec.137 to allocate funding to extra-statutory services - AFAIK, advice provision would probably be under this (anyone feel free to correct me if I've got the wrong end of the stick). He felt that funding provided through this route may not need to be subject to the EU rules.

Apparently, both Barnet and Waltham Forest councils have been doing some work around this but I don't know who you could contact to find out more.

Sorry there's not more, feels a bit like swimming through treacle trying to understand the vagaries of local authority funding/duties, etc. I'm wondering whether your statement that the LA claim to be aligning their funding with the LSC means that you're next for the CLAC pilots currently underway in Leicester and Gateshead? I can't for the life of me think what the LSC could do to "require" the alignment of funding otherwise.

Good luck with it all.

Thanks Paul - does assist - funding for advice (and other areas of grant giving) is a discretionary power, rather than statutory duty (probably under s137). It would therefore seem logical that EC competative tendering and the Public Contracts Regs 2006 do not apply to discretionarily funded 'services'.

I can't help feeling the LA are (mis)using this issue (and LSC proposals)to justify an internal agenda around their grant funding for advice centres.

I note that the Carter report recommends that LSC should work with the highest tier of LA - as we are not in a unitary authority that would be the county council whereas the funder in question is a district council (of course it dosn't stop them talking). Similarly I can't see anything that would enable LSC to 'require' a LA to align their funding. It wouldn't supprise me if the LA are interested in being involved in a CLAC or CLAN (but see above re Carter).

How is any advice provider supposed to plan their services with all this uncertainty / change when even the funders don't know whats going to happen? - and yet the same funders still require 3 year business plans!! And will they fund the management time required to deal with all of this?

Whatever happened to the days when we spent our time actually advising clients? Yeah, old and cynical by Tue pm.

Another thought - you may want to speak to the Public Law Project who would probably be able to give you some advice on this issue. They do all sorts of work in relation to this area and there are definite implications for the voluntary sector more generally, let alone independent advice services specifically.

Old and cynical maybe but at least you're still here shouting about it, Peter....

Yes, please speak to us about tendering of LA services in relation to grants to voluntary sector organisations. We can give you free advice under our "Empowering the voluntary sector" project funded by the Big Lottery, and I have already done some work on this issue, so do give me a ring.

Louise Whitfield
Public Law Project - empowering the voluntary sector
020 7697 2192

Thanks Louise - have tried your number and others for PLP on your website but all are 'dead' - our phones are working OK - problem at your end??

Will keep trying or you can contact me on 01865 744165