Regarding design competitions, I remember the guy from the council saying that no-one would be interested in such a small fee for the pools for a design competition.

However, this is clearly not the case:

THEY DO IT IN SALISBURY:
Salisbury has run one with the RIBA for a job for 3 million:
http://www.salisbury.gov.uk/news/2008/di...8-14-a.asp

Here an exert: The design competition launch by the district council and county council is expected to attract entries from architects and landscape architects across the world.

It has been organised by the Royal Institute of British Architects, which regularly holds similar competitions up and down the country to improve the look and feel of cities and towns.

THEY DO IT IN THE USA:
http://www.archiseek.com/content/showthread.php?t=6118

THEY DO IT IN KENT:
http://www.tunbridgewells.gov.uk/section...docid=5316

Here is an exert:
Cllr Roy Bullock*, Leader of Tunbridge Wells Borough Council, said: ?We were extremely pleased with the high standard of submissions received for the design competition. Now that the winner has been announced we embark on the detailed design stage, which should lead to the submission of a planning application in the near future.

* Any relation to Sir Steve??

Again this was organised by the RIBA.

THEY DO IT IN LANCASHIRE:
http://www.rossendale.gov.uk/site/script...newsID=477

Here is an exert:
A Lancashire design competition has captured imaginations around the globe and attracted 87 Expressions of Interest from as far afield as Italy and the United States.

Again this was organised by the RIBA.

THEY DO IT IN CHELTENHAM:
http://www.cheltenham.gov.uk/libraries/t...FolderID=0

Again this was organised by the RIBA.

These were the first 5 I found on a quick google search. There are hundreds and hundreds of them.

So if they do it in lots of other places, including Southwark for their swimming pools , WHY DIDN'T LEWISHAM COUNCIL DO IT?

HERE IS A QUOTE FROM RIBA ABOUT ARCHITECTURAL COMPETITIONS:
An architectural competition enables a client to choose from a variety of schemes to resolve their project. The RIBA organises bespoke architectural competitions that encourage excellence in design.