AGCM

 LOCAL PUBLIC SERVICES: ANTITRUST AUTHORITY SAYS REFORM AT RISK WITHOUT ADEQUATE RESOURCES

Checks on non-compliance would be ineffective. Staffing must be increased to avoid paralysis of the institution. Report to Government and Parliament.

The reform of local public services contained in the amendment to the budgetary measures, while it represents a positive move, can be improved so as to guarantee greater competition aimed at the operational efficiency of the services.

So writes the Italian Competition Authority in a report to the Government and Parliament.

The Antitrust Authority agrees with the statement of principle whereby contracts are normally awarded to businesses or companies of any form that are identified by way of a public competitive bidding procedure. Nevertheless, the option to override that principle, as specified in the Article itself, on the one hand reproduces the present mechanisms called ”in-house” and “public-private partnerships” and on the other hand does not obviate the conflict of interest between public entities that control and own/part-own public services and public entities that manage such public services. The obligation on local councils to submit a report to the Antitrust Authority when they make an exception to the rule is the only administrative bulwark against too-liberal interpretations of the option to override, but it risks being insufficient. The Authority undertakes to carry out this function to the best of its ability, even if only on a consultative basis, but emphasizes its concern that no additional resources have been assigned for the purpose. Such resources are absolutely necessary for the performance of these new institutional tasks: otherwise the efficient carrying out of even the exising tasks may be compromised.

In the Antitrust Authority's view, it is also necessary to reformulate the rule on ownership of networked infrastructure to clarify that there is no imposition of public ownership of networks that have thus far been in private hands, it being understood that management of infrastructure is open to the private sector.

As for the multi-utility bids specified in the reform, the law should establish rigorous criteria making this choice subject to there being a clearly demonstrated economic advantage. Otherwise, there is a risk of unduly assisting those corporations that are already organized to perform multi-sectoral activities.

Rome, 24 July 2008