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EUROPE RULES ON TENDERING TO PARTNERSHIPS

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How easily councils can award work to partnerships set up with the private sector has been called into question by ...
How easily councils can award work to partnerships set up with the private sector has been called into question by a European Court of Justice ruling .

The court ruled that an Italian council could not award work to a company without competitive tendering, despite owning 99.98% of its shares.

Judges held the Busto Arsizio municipality did not control the company - in which case it need not have tendered the work - because its directors enjoyed 'wide managerial powers'.

Mo Baines, principal adviser at the Association of Public Service Excellence, said: 'It means if councils set up partnerships with the private sector, they cannot award work to that partnership as of right.'
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