HC Deb 07 March 1994 vol 239 cc17-8
33. Sir Donald Thompson

To ask the Chancellor of the Duchy of Lancaster what steps the Government are taking to encourage competition in the provision of public services.

Mr. Waldegrave

The Government's policy was set out in November 1991 in the White Paper "Competing for Quality". Since April 1992, civil service activities worth £1.1 billion have been market tested or otherwise examined under the programme to see how value for money can best be improved.

Sir Donald Thompson

Will my right hon. Friend do his best to kill the myth that market testing is not worth the money involved?

Mr. Waldegrave

We shall shortly be publishing the details of the gains that have been made in quality and value for money when we publish the citizens charter White Paper for this year. The gains to the public and to the taxpayer have been great indeed.

Mr. McAllion

Will the Minister confirm that other Ministers in the Government have been told to apply the prior options test to every departmental activity for which they are responsible and that, under that test, they are required to consider direct privatisation—contracting directly to the private sector—before they even consider putting the activity out to competitive tender? Does not that show that the Government are not in the least interested in competition in the provision of public services, so keen are they to hand out big fat contracts to their friends in the private sector?

Mr. Waldegrave

That perhaps defines the difference between the two parties: we want to look at every activity of government to see, first, whether it needs to be done and, secondly, whether government needs to do it. The hon. Gentleman looks at matters from the other point of view and says that every activity should prima facie be undertaken by the state. That is the difference between our two parties.