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Limit local government to negotiating 5 year contracts

Comment 6th July 2010

There are quite a few instances of local government agreeing 30 year contracts with suppliers.

If it's a good deal no one minds, however if it's a bad deal then the next 5 administrations are stuck with this bad deal and at who knows what cost to the rate payer. If the supplier has any sense they'll also write in a massive penalty clause making it almost impossible to get rid of them.

Even if it was a good deal when the contact was negotiated, circumstances and priorities change so there's not much chance of it remaining a good deal for 30 years.

Why does this matter?

To reduce costs in the long term and to prevent a rogue administration locking it successors into its bad decisions.

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