CBI warns over extending 'freedom' laws

PROPOSALS to bring firms involved in running schools and hospitals under closer scrutiny could "deter" the private sector from investing in public services, business leaders have claimed.

The claim from CBI Scotland was made after ministers launched a consultation on extending Freedom of Information (FoI) laws, which give anyone the right to obtain information from publicly funded bodies, such as councils, hospitals and prisons, about their activities.

Scottish Government proposals could see contractors who build and maintain schools, hospitals and roads, along with private prison operators and leisure, sport and cultural trusts set up by local authorities and housing associations, subject to FoI laws in the same way as councils and health boards,

However, ministers have been criticsed for not looking at extending the FoI laws to local government body Cosla, which is currently exempt, so that spending on services could be monitored more closely.

David Lonsdale, CBI Scotland's assistant director, claimed forcing private companies to be part of FoI could lead to increased costs, as well as discouraging firms from getting involved in running public services.

He said: "Involving the private sector in the delivery of public services can be beneficial to the public sector, services users and taxpayers alike.

"Indeed, Scottish ministers should be seeking to encourage and extend private sector provision of public services in Scotland, particularly at a time when government finances are set to become much tighter and when efficiency and innovation in public service delivery ought to be at a premium.

"Extending FoI obligations to include businesses which supply public services - when the public authorities who commission the service are themselves already subject to FoI - risks duplication, could increase the cost of public services and might deter potential suppliers from contracting with government.

"It would also appear at odds with the Scottish Government's current and welcome drive to simplify both regulation and public procurement."

The Scottish Government said it had not yet reached a firm decision on how FoI could be extended, but confirmed that bodies being looked at included the Association of Chief Police Officers in Scotland (ACPOS), Glasgow Housing Association, private prison operators running Addiewell and Kilmarnock jails and contractors who operate and maintain trunk roads.

Minister for parliamentary business Bruce Crawford said: "The Scottish Government has not reached firm conclusions on which bodies it might be appropriate to extend coverage to. Creating additional regulatory or financial requirements must be appropriate and proportionate, especially given the global economic downturn which has put some sectors of the economy under particular strain."

The consultation will run for 14 weeks, until 2 November. Organisations being looked at will be asked for their views, with the public also invited to get involved.

Scottish Information Commissioner Kevin Dunion said he would push for FoI laws to be extended.