HC Deb 01 December 1994 vol 250 cc1324-6
7. Ms Rachel Squire

To ask the Secretary of State for Northern Ireland if he will make a statement on the guidelines on market testing in the NHS community care trusts.

The Parliamentary Under-Secretary of State for Northern Ireland (Mr. Malcolm Moss)

Health and social services trusts, including those providing community care services, are subject to Government policy on market testing as set out in the White Paper "Competing for Quality". In addition, they have been provided with guidance on the conduct of market testing in the form of a compendium of good practice.

Ms Squire

Does the Minister agree that Government guidelines on the market testing of NHS community care trusts in Northern Ireland are implemented more forcefully there than they are in the remainder of the United Kingdom? Does he further agree that there has been unwarranted Government interference in the operation of trusts, which has led to a deterioration in quality and in standards of patient care? Does he admit that the Government have been two-faced in their policy on health and social services and have acted against the general interests of the public?

Mr. Moss

The Government's definition of, and policy on, market testing in health and personal social services for Northern Ireland is the same as that applied to all other parts of the health service in the United Kingdom. I remind the hon. Lady that the purpose of market testing is to ensure that the resources available are used as effectively as possible for the benefit of patients.

The results for Northern Ireland show that market testing in health and personal social services has been a great success. For example, up to March 1993, more than £60 million of support services had been market-tested, with identified savings of £11 million per annum.

Mr. John Marshall

I congratulate my hon. Friend on his promotion. Does he agree that, wherever market testing has been undertaken, it has produced savings and value for money for the taxpayer? Its opponents are more interested in jobs for the boys than in quality of service to the customer or value for money for the taxpayer.

Mr. Moss

I am most grateful for my hon. Friend's warm welcome. The savings from market testing are used in the HPSS for the benefit of patients and clients. They are pooled with funds from other cost improvement programmes and the growth moneys provided by Government to fund service developments and meet new pressures.

Rev. Martin Smyth

I, too, welcome the Minister to his position and the shadow Northern Ireland team to its first Northern Ireland Questions today.

The Minister will recognise that in market testing and contracts it is not always wise to choose the lowest bidder because it usually turns out to be at the highest cost. Is the Minister satisfied that those in community trusts with the responsibility for the most vulnerable in our society at a time of child abuse scandals in the Province are receiving the necessary back-up and the financial support to do the job?

Mr. Moss

I agree partially with the hon. Gentleman that implementing in-house service level agreements without competition may improve efficiency and effectiveness, but they do not prove that the optimum levels have been achieved, nor do they satisfy market testing criteria. On the hon. Gentleman's second point, I take on board the current difficulties in the Province, but I am assured that there is no lack of funds in the social services to meet the needs of the population.

Ms Mowlam

One important aspect of being cared for in the community is the ability of elderly people to be able to afford to heat their homes. Do the Minister and his colleagues realise that they ignore at their peril the opposition that exists among the people of Northern Ireland and the representatives of all their parties to the imposition of 17.5 per cent. VAT on domestic fuel?

Mr. Moss

I recognise the opposition from Northern Ireland Members of Parliament, but I refer the House to the comments in the Budget speech only this week that proper compensation is to be paid to pensioners to compensate for VAT at 17.5 per cent.