COUNCILS in East Lancashire are turning to the internet to save cash when they buy pens and paper.

Three authorities - Hyndburn, Pendle and Rossendale - managed to save almost 50 per cent on a huge stationery order after joining forces and using a high-tech new auction system.

A "reverse e-auction" was used, and 12 stationery companies invited to take part in the event, after providing samples of their goods.

Eight firms eventually joined in, bidding with lower and lower prices to attract the council's business.

The three authorities saved more than £36,000 on the order, which would have had an estimated cost of as much as £59,000.

Now more auctions are being planned to save further cash when councils buy such things as printer cartridges.

The reverse e-auction works by pitting invited companies against each other. They have to outbid each other in an online auction to provide the best deal to the local authorities. The move saves time and money because the councils don't have to go out looking for the best deal and comparing quotes and prices.

Lorna Dobson, Partnership programme manager, said: "The partnership is using cutting edge procurement to reduce the cost of goods.

"E-auctions reduce red tape and bureaucracy, without compromising the integrity of the procurement process. Once again, East Lancashire is at the forefront of electronically-enabled services."

The bidding war was started as a brainwave of the East Lancashire e-Partnership, a group made up of five local councils - Burnley, Hyndburn, Pendle, Ribble Valley and Rossendale.

The councils are now hoping to make the new e-auctions common practice. The next auctions are to be held on Thursday, August 19, for the purchase of printer cartridges and toners, and September 16 for paper.

Coun John Griffiths, Hyndburn Council's 'e-champion', said "The e-procurement process saves both time and money, in our case a massive 48 per cent on stationery items at the last e-auction.

"It's also a great example of the benefits of harnessing the power of new technology, and working in partnership to save money."