HC Deb 20 March 1967 vol 743 cc1019-20
3. Sir R. Russell

asked the Minister of Health if he will instruct the hospital service to adopt a costing system for its laundries which will make possible a comparison with the contract prices of commercial laundries.

Mr. K. Robinson

The system at present in use is intended primarily to inform managements of the cost of their own laundry work at all times, and to enable them to compare it with the cost of other hospital laundries, but it can easily be applied to comparison with the cost of other types of laundry.

Sir R. Russell

Is the right hon. Gentleman aware that in some cases the cost of land, buildings and plant are not included when reckoning total costs and would not he agree that the interest on these costs should be taken into consideration so that comparisons can be made with commercial laundries?

Mr. Robinson

I believe that the system enables this comparison to be made. Certainly depreciation charges for equipment are already included. The hon. Gentleman may be aware that, because of its special nature, not all commercial laundries are prepared to accept hospital laundry. In many areas, it is not possible to obtain competitive tenders.

Mr. Braine

Is the right hon. Gentleman aware that the hospital costing returns show enormously wide variations and that in some hospitals the costs are six times greater than in others? What are the reasons for this and are they being investigated?

Mr. Robinson

Yes, Sir. We are keeping these costings under constant review. One likely reason is difference in size, because it is much more economic to run a laundry with a very large turnover than a small laundry. We are moving towards a system of group laundries, and this would be in the interests of efficiency.