The boss of Iceland has come up with this.
To which the only appropriate response is “horseshit”.
His argument is that councils (or local authorities) award contracts based solely on price. Now I am not directly involved in the tendering process, and indeed not directly involved in the council tendering process, but I do have some familiarity with the process – sometimes I am one of the “quality gates” to get past in an area which works to many of the same rules as local authorities.
And nobody awards contracts based solely on price. At least not if they want to keep their jobs for longer than 10 minutes.
It is true that the public sector will award a contract based on price with all other things being equal. But if you want to supply burgers to all of the schools in the county of Rutland, you’ll probably have a huge pile of paperwork to complete which includes specifying the size of the burgers, and what’s in them.
Once all that paperwork had been sent back to the council, some poor unfortunate has to go through all the paperwork whittling down the responses to those who meet the criteria – strange as it may seem an invitation to tender for supplying 10,000 beef burgers will solicit responses from people willing to supply 50 chickens! Once the responses have been whittled down, the cheapest response is selected – if there’s no good reason to reject it.
Does this result in a downward pressure on price? Of course it does – and councils would be criticised if they did not exert downward pressure on prices. But it doesn’t encourage corrupt practices.