§ 32. Mr. WellsTo ask the Chancellor of the Duchy of Lancaster what measures the Government are taking to extend the purchaser/provider split as part of their programme of public service reforms.
§ Mr. WaldegraveThe principle of splitting responsi bility for purchasing services from that of providing them has been established in the national health service and in local authorities for a number of years. It is now being applied in central Government through the next steps initiative and market testing.
§ Mr. WellsWill my right hon. Friend give the House some examples of savings from market testing and contracting out, and are the savings retained by the Department which achieves them?
§ Mr. WaldegraveI can give one example that may be of interest to the House. Recent market testing by the Ministry of Defence enabled savings to be made which allowed the retention of two front-line regiments. I can confirm to my hon. Friend that the savings are retained by the Department for spending on the services that it provides.
§ Mrs. DunwoodyIs the Chancellor of the Duchy aware that there is considerable and clear evidence that if the sort of market testing that he is talking about is extended, for example, to the income tax authorities, it will lead to real problems with confidentiality for our constituents? Before he rides that hobby horse off into the distance, will he consider its implications carefully?
§ Mr. WaldegraveI have never understood why it is thought that only those of our fellow citizens who work in the public sector can keep proper rules of confidentiality. In national defence, for instance, defence contractors have for many years held secrets at least as sensitive as those held by any part of the public sector.