HC Deb 11 June 1990 vol 174 cc15-6
96. Mr. Cryer

To ask the Minister of the Civil Service whether he has any plans to change the rules regarding civil service management buy-outs of public services; and if he will make a statement.

Mr. Luce

I have no plans to change any of the conduct rules in the civil service pay and conditions of service code that may be relevant to civil service management buy-outs.

Mr. Cryer

Is not the Minister concerned that the Crown rules of 1988 were set to one side for the sell-off of the skill centres to Astra Training Services, consisting of three civil servants in charge of the skill centres? Is not the right hon. Gentleman alarmed that only they were privy to the fact that £11 million was to be given to the purchasers along with the skill centres? Is not he further alarmed that those civil servants, and the Minister, connived to deny that information to the 61 other bidders, who made various offers for the skill centres? Those bidders included organisations such as Wimpey and Preston borough council. They were never told about the secret sweetener that was being made available to insider dealers.

Mr. Luce

The hon. Gentleman's last allegation is entirely untrue. The first consideration with management buy-outs is whether that option is the best way to get best value for money and to serve customers. I should have thought that the hon. Gentleman would recognise that as the first consideration. The Government understand the need to maintain proprieties in any civil service buy-out. Arrangements are made to ensure that officials participating in buy-outs do not have the opportunity to put their private interests above their public responsibilities. The interests of the vendor are secured by setting up a privatisation unit to handle the sale, which is separate from the management of the organisation that is being sold. Clear guidelines are drawn up.

Mr. Cryer

On a point of order, Mr. Speaker. In view of the entirely unsatisfactory nature of that answer, I give notice of my intention to raise the matter again on the Adjournment.