ABSTRACT

This chapter focuses on the increasing use made of contracting-out as a method for service delivery. It considers contracting-out in the United Kingdom, with particular emphasis being placed on the problems of accountability and control. It will be seen that the resignation of the European Commission in 1999 was due primarily to failures in relation to Community programmes where contracting-out was used. In addition to the economic arguments and those concerning accountability, contracting-out also requires one to think about the possible application of public law principles to contracted-out activities. The Reports of the Court of Auditors, and that of the Committee of Experts, show the need for proper supervision if contracting-out is to be acceptable. The Committee of Experts was critical of the lateness of the Commission’s response to the problems in European Community Humanitarian Assistance Office. The Committee’s more general words about contracting-out in the context of the Leonardo programme could be extended to all of the cases studied.